14 Mar Why is it inherently more difficult to value some assets than others?
Order Instructions
1.VALUATION OF ASSETS
Why is it inherently more difficult to value some assets than others?
2.BOND RISKS
Assume you have some money and want to save to amass a given amount at the end of 5 years.
One of the options you have is a 5-year, 10% coupon bond that is currently selling at par. Assume that bond is default free.
What will determine the total amount of money you will have at the end of year 5 if you buy the bond today?
3.RISK
If investors’ aversion to risk increased, would the risk premium on a high beta stock increase by more or less than that on a low beta stock? Explain.
