Financial Market Assignment Financial Market Assignment Question 1. Cisco (CSCO) issued 8 billion bonds last month (feb 2014) a. What wasthe couponrate offered by CSCO FV= $1000 TMB= 8B rate=? b. What was YTM on CSCO bond? Find ytm=I=k=discount rate c. find out the price of CSCO bond (PV). How much you would be paying if you are an investor. Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW 2. Take the following data as giving: Bond A: FV=$1000 I=5% C.R.=5% N=10 Bond B: FV=$1000 I=5% C.R.=5% N=10 Show all calculations to prove Malkiel Bond T5 which says, "God is on our side", called covexity, i.e. a 1% increase in i-rate and a 1% decrease in i-rare in both bonds will NOT have a symmetric % ? P bond 3. Several years ago, a Texas bank offered a thirty-year CD with an annual return indexed to inflation. The rate offered was the annual percentage increase in the CPI plus 4 percent. Suppose that you are in the 28 percent marginal tax bracket and require a 5 percent real return after . Suppose also that the annual inflation rate last year was 3 percent, so this year’s annual rate on the CD investment is set at 7 percent. a. Show the after-tax real return you would earn, assuming that the inflation rate stays at 3 percent and the offered is 7 percent. b. What ex-ante nominal rateshould you require instead to keep your after-tax real yield at 5 percent?