Business Finance

Assignment 1
Take the 10 year Greek bond, the 10 year US Treasury bond, and the Bund-
1. Calculate the YTM given data from www-investing-com or any other publicly
available data source- Does the yield you find match the one you see online?
2- What isthe coupon yield of the bond-
3. What isthe total return if you reprice the bond after 1 year assuming the whole yield
curve is unchanged?
4- Compare the total return to the coupon yield- Discuss-
Presentation by one group- Key part of participation-
Assignment 2
Pick 4 companies and calculate their expected returns using a simple “Gordon growth
model” and using the nominal growth rate of the economy for the company growth rate-
Discuss your assumptions and findings-
Presentation by one group- Key part of participation-
Assignment 3
Take your companies from Assignment 2- Pick one-
1- Calculate their betas- Discuss-
2- Calculate their cost of equity using the CAPM-
3- What is their implied growth rate given these expected returns? Discuss your
findinns