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ITEM
Loan period
Interest
annum
rate
per
Repayment
4
5
TERMS
Minimum 3 years
Maximum 15 years
15% if term is between 3 and 5 years
16% if term is above 5 years up to 8 years
17.5% if term is above 8 years up to 10 years
19% if term is above 10 years
Equal installments computed on a monthly basis.
Interest repayment is highest in the first month and
declines in progression to the last month. Principal
is lowest at start and increases with each month.
17th August 2015
Last day of the month, one month after start date
and every last day of the subsequent month until
maturity (use the EOMONTH function)
The principal and interest are paid off every month for the duration of the
loan.
Required;
Develop a model to display the scheduled monthly loan repayment showing
the following fields;
a)
b)
c)
d)
Shares data
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Additional information;
Required
a) Add a new column and compute each securitys cost using CAPM (5
marks)
b) Add a new column and compute the market capitalization as at 28th
May 2015 (5 marks)
c) Show the rankings in separate columns each by;
i. P/E ratio where rank 1 is the stock with LOWEST P/E ratio (4
marks)
ii.
EPS where rank 1 is the stock with HIGHEST EPS ratio (4
marks)
iii.
Stock yield. Assume yield is computed by EPS/Market price as at
30th April. Rank 1 = the stock with the HIGHEST yield (6 marks)
d) Using a line graph, show the trend of the two stocks one with the
highest and one with the lowest market capitalization as at 28th May.
The horizontal axis should show the date while the vertical axis should
show the prices for all days between 2nd April and 4th June 2015. (6
marks)
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Bond 1
1000
12%
13.3%
30-Jun-10
10
Next Coupon
date after Today
Semi annually
Bond 2
1000
10%
13.3%
07-Apr-14
12
Next Coupon date
after Today
Quarterly
Required;
a. Tabulate the cashflows for each of the above bonds from issue date to
maturity, including the specific date for each cash flow (12 marks)
b. What is the Net present value of the future cash flows as at the
accounting date? (8 marks)
c. What is the Maturity date of each bond? (4 marks)
d. What is the duration of each of the above bonds if the basis of the
Bonds is Actual/365? (6 marks)
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