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Part One: Quantitative Exercises
In this part of the assignment, you will:
Download the Week 3 quantitative exercises called FIN2030_W3_A2_Template.xlsx.
Complete the assignment using this template. You may use the formulas in Microsoft Excel and/or a financial calculator. Be sure to summarize your results with embedded formulas in the spreadsheet, using the mathematical equations, or the steps taken on the financial calculator.
Part Two: Final Project 2: Portfolio Analysis
Part A: Research Online Trading Sites and DRIPs
For this part of the assignment, you will evaluate the choices in purchasing stock via online brokerage accounts (where you can buy and sell stock via the Internet) and the use of dividend reinvestment plans (known as DIPs and DRIPs) or mutual funds or index funds.
For online brokers, you will be looking for the requirements to open the accounts: costs, minimum balances, and other features. Because most DIPs or DRIPs are available from publicly traded companies, you can search their Web sites or a search engine on these plans and their requirements.
Perhaps the most famous and useful Web site for these programs is http://www.directinvesting.com/. You are to compare and contrast online brokerage to DIPs and DRIPs.
Required:
Research online trading sites and DRIPS as outlined below, and summarize your findings. Make sure to include a summary table of the relevant information.
Part B: Research Market Data on Bonds
Research the current (within the last two months) market data on bonds from AT&T, Dell, and IBM. Assume each bond has a par value of $1000, unless otherwise indicated. Cite your sources.
Required:
Class, for Part II Part A of the referenced assignment, you need only complete Requirement # 1 regarding the online trading companies. In turn, you can complete this section in 2 – 3 pages. Part II Part B of the referenced assignment, let’s all just use the following basis//table to perform Bond Valuation: AT&T Dell IBM Coupon 6.80% 6.50% 8.40% Maturity 26 years 27 years 9 years Frequency Semi-Annual Semi-Annual Semi-Annual Rating A A – A + Yield To Maturity 5% 6.5% 8.0% Hopefully, these guidelines will help us complete the assignment in an effective and efficient manner. I thank you for your attention to and adherence regarding this matter.
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