a) A bond with 8 years to maturity has a nominal value of NOK 1,000,000. Coupon rates at 3% per year is paid annually. Annual market interest rate is 4%. What is the price of the bond today?
(a) A bond with 8 years to maturity has a nominal value of NOK 1,000,000. Coupon rates at 3% per year is paid annually. Annual market interest rate is 4%.
What is the price of the bond today?
(b) A company will issue shares for NOK 20 million. The share capital today is 5 mill. NOK (500,000 shares of NOK 10). The shares are now traded for NOK 50 per share, action. The issue will have a preferential right for old shareholders. The issue price is set at NOK 40 pr. action.
What is the theoretical value per, subscription right?
(c) The balance sheet for Rotor ASA is shown here in market values. That's 400i million outstanding shares..
The balance sheet (market values in NOK million).
| Cash | 800 | Equity | 8,500 |
| Fixed Asset | 12,000 | Debt | 4,300 |
| Total | 12,800 | Total | 12,800 |
The company has announced a dividend of NOK 7.00 per. action. Ex-dividend day is tomorrow. Ignore taxes.
What is the market value of Rotor after the dividend payment?
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