Module 2 – SLPSTOCKS AND BONDSBond ValuationThis process accommodates two parts: Half I and Half II.Half IAnswer these questions and current your work:Assume that the company that you just chosen for the Module 1 SLP has a bond wonderful that matures in 20 years and has a coupon worth of 6.5%. The par price of the bond is $1,000.If the yield to maturity is eight% and the bond pays curiosity on an annual basis, whatâs the current worth of the bond? Is the bond selling for a premium or low price? How are you going to tell?If the yield to maturity is eight% nevertheless the bond pays curiosity on a semi-annual basis instead of an annual basis, whatâs the current worth of the bond? Is it completely totally different from the value when using annual compounding? Make clear.Now, assume that the financial system enters proper right into a recession and charges of curiosity fall. The bondâs yield to maturity is now 5%. Whatâs the bondâs new worth? How does the worth consider alongside along with your reply partially a? Why did the bondâs price change?A bond matures in ten years and is presently selling for $1,125. The bond pay curiosity yearly, has a par price of $1,000, and a yield to maturity of 10.75%. Whatâs the bondâs current yield?Half II:Write a 2-page essay evaluating reinvestment hazard and charge of curiosity hazard and the way in which an investor can defend his or her portfolio from these risks. Please be sure to speak about interval in your paper.SLP Undertaking ExpectationsYou are anticipated to:Describe the purpose of the report and provide a conclusion. An introduction and a conclusion are mandatory on account of many busy folks inside the enterprise environment might solely study the first and the ultimate paragraph. If these paragraphs aren’t attention-grabbing, they certainly not study the physique of the paper.Reply the SLP Undertaking question(s) clearly and provide important particulars.Write clearly and correctlyâthat is, no poor sentence building, no spelling and grammar errors, and no run-on sentences.Current citations to assist your argument and references on a separate internet web page. (All the sources that you just listed inside the references half should be cited inside the paper.) Use APA format to supply citations and references.Kind and double-space the paperWhenever acceptable, please use Excel to level out supporting computations in an appendix, present financial knowledge in tables, and use the data computed to answer follow-up questions. In finance, together with being able to write down successfully, itâs essential to present knowledge in an professional technique and to analysis financial knowledge. That is part of the duty expectations and can in all probability be considered for grading features.