Case Study Questions

Our professional essay writing service helps you get control over your studies
Get started Order in Chat
10+
Years of experience
53k
Papers prepared
4.8/5
Customer satisfaction

Question

We have a group case study to do, we have answered most of the questions that require calculations and only the written work is left. I was assigned with two questions to answer which should at least take 2 pages. I will include the case, the work my group mates have written as well as the excel answers.

The written questions are on the second page of the case study, and I am assignmed with the 3rd and 6th questions. (3rd: • Should one use the nominal or the effective YTM when comparing the return on bonds with that of other securities?) (6th: • How likely it is that KLX will call bond II?)

The grading will be based on “All case reports will be graded on content (i.e., analytical reasoning and application of finance principles) and writing (i.e., the ability to clearly and effectively justify”

Answer

Case Study Questions

Question 1

Should one use the nominal or the effective YTM when comparing the return on bonds with that of other securities?

When a person invests in bonds, the most effective way of doing an analysis of the returns from the date of purchase up to the bond maturity date is through doing a comparison between the nominal and the effective yield. One can only pay the original price on the certificate only when they buy a bond on its issue date. The coupons on the bond outline the interest rate to be paid and that has an effect on the price paid by the investor. The market interest rates are subject to fluctuation hence have an effect on the price that one purchase or sells a bond. The prices can be higher or lower compared to the prevailing market interest rates. The bond issuer pays the par value or the face value at the maturity date of the bond. One will buy the bond at a discount or pay a premium unless the bond was purchased at its issue date. The par value is used for calculating the nominal yield to maturity. The bond prices fluctuate based on their effective yield, and not nominal, on many occasions. When the bond matures, one receives the full par value or face value in addition to a final interest payment.

ORDER A PAPER LIKE THIS NOW

            Therefore, one should use the effective yield to maturity when comparing the return on bonds with that of other securities since the prices of the bonds are based on the effective yield. The payment rates may also differ thus making the effective yield better in comparing bonds with other securities. Yield is affected by the price one pays for the bonds, and the effect is on both the nominal and effective yield.

Question 2

How likely it is that KLX will call bond II?

A bond is callable or redeemable when the issuer has the privilege of calling the bond before it attains its maturity date.  It thus implies that the issuer can buy back the bonds at a call price that has been defined. The call price will be higher than the face value. Bonds are in most cases called back when there is a decline in the interest rates. The bonds are called back for the purposes of refinancing a debt at a lower interest rate. A person or a company calls the current bonds and then issues them back at interest rate that is lower than the previous one. The value of a bond depends on the date that it is called back before the maturity period. When it is called back much earlier than the maturity date, the call value will be much higher compared to when it is called back when it is close to the maturity date.

            The likelihood that KLX will call bond II is high because with an interest rate of 7.5 percent compared to the other three bonds, the refinancing of the debt can be done at a lower interest rate compared to the other bond I and Bond III that have an interest rate of 8.073 and 7.99 percent respectively. Bond II can be considered as relatively expensive compared to the rates that exist in the market due to the relatively lower interest rate when it attains its maturity compared to the other two bonds.

Guarantees
What you will get
Professional writers
Our strict writer selection process ensures that only professional college essay writers, subject-matter experts with MA and higher degrees work on your orders.
100% confidentiality
Your personal data is in no way shared with third parties. Writers also do not have access to it. We require your email address for login and notification purposes only.
Affordable prices
Essay Help USA is a cheap essay writing service offering the best balance between quality and price. Regular customers enjoy special discounts, deals, and other perks.
Original content
We guarantee plagiarism-free work and that your custom college papers will pass Turnitin. Since Turnitin saves all files, we check papers with Copyleaks and Copyscape.
NEVER TRIED A WRITING SERVICE BEFORE?
Here's why students opt for our essay writing company
Hiring a qualified paper writer is one of the best ways to improve your academic writing skills and do better in class.
Lack of time
GPA concerns
Tough topic
Trust issues
When 24 hours is not enough
Most of the students approach us when they are overworked, work in parallel with studies, do internships, and do not have enough time for everything. So, we are their problem solvers and even offer super short 1-3 hour deadlines for emergency requests.
Quick turnaround time. You will receive your
paper before the deadline.
Get started Order in Chat
When grades need a boost
Our experts can help improve your performance and earn you a maximum grade. This is made possible due to the strict quality control, writers' rating system, adherence to requirements, proper formatting, access to all academic databases, credible and up-to-date sources.
Only credible sources. Your work will be based on reputable
sources that provide factual information on the topic.
Get started Order in Chat
When getting help is the best option
Sometimes you can get stuck on a topic, may not be able to find adequate sources, or access to such sources can be too expensive. That's when extra help might be the most valuable tactic to save nerves and meet the deadline with a high-quality paper.
All copyrights belong to you. You can use the delivered
samples in any way you choose.
Get started Order in Chat
When reliable service is needed
We cover almost all types of work, regardless of their complexity. That is why our service is used by college, high school, undergraduate, MA, and Ph.D. students from the USA, UK, and other regions. Besides, we partner with safe payment methods and provide a transparent refund policy.
Money-back guarantee. We will return your money
if you are not satisfied with the result.
Get started Order in Chat
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Essay Help USA
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Psychology
Awesome
Customer 453151, May 16th, 2021
Nursing
It's a great job that was done BEFORE deadline WOHOOOO. i'LL use again.
Customer 453063, October 30th, 2020
Healthcare
I was impressed, and was blessed with a grade of B on 1123719 and an A on 1123720. I will use you again.
Customer 453049, April 16th, 2020
Nursing
I received the work.
Customer 453041, January 20th, 2022
Education
Thank you.
Customer 453250, March 17th, 2021
Ethics
I think the writer has what it takes to handle my next classes and my best friend's. I hope the quality stays the same.
Customer 453079, November 30th, 2021
Finance
Your service rocks. you always assist me at my hour of need. thanks...nice company! i recommend.
Customer 452989, January 7th, 2018
Business
Paper looks fantastic. Nicely written, structured and formatted according to the latest APA guidelines.
Customer 453150, January 28th, 2018
Nursing
several things I like about your company: timeliness, highquality work and professionalism. I am glad for the help.
Customer 453059, March 9th, 2021
Finance
no complaints! thank you 
Customer 453300, February 5th, 2021
History
I'm very pleased with my paper. this is my best work from you guys so far.
Customer 453148, January 8th, 2019
Nursing
Very patient writer. I highly recommend him to other customers.
Customer 453041, February 28th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Show more