Calculate the monthly charge

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1. Portics Ltd. borrows K150, 000 from ABSA bank. The repayment agreement has a maturity of 4 years with periodic payments being made at the end of each month. The lender charges 20% interest per annum. Calculate the monthly charge and construct the amortization schedule for the first THREE (3) repayments on this loan.

2. A bond is issued by Zambeef and has 12 years remaining to mature. The company issued the bonds at par K867, 000 with a coupon rate of 12%. The market interest rates for such is 9% compounded quarterly. Determine the price of the bond.

3. Proflight paid a divided of K2.00 in 2019 and the divided is expected to grow at 15% for the next 3years and thereafter decline to 10%. The required rate of return on the stock is 18%. Find the value of the stock.

Reference no: EM132719750

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