Answer:
the expected yield to maturity for bond C in 1 year :
1.0799³ = 1.06 x (1 + r)²
1.188 = (1 + r)²
√1.188 = √(1 + r)²
1.08999 = 1 + r
r = 0.08999 = 9%
the yield to maturity of zero-coupon bonds = (future value / present value)¹/ⁿ - 1
0.09 + 1 = ($1,000 / value in 1 year)¹/²
1.09 = ($1,000 / value in 1 year)¹/²
1.09² = $1,000 / value in 1 year
value in 1 year = $1,000 / 1.09² = $1,000 / 1.1881 = $841.68 ≈ $842
If you have an awesome choice that says inflation... then that is your answer.
Living dying survival food water animals according to my ficisallogu Shri
Answer:
correct option is a. Retiring the oldest bond
Explanation:
given data
currently cash = $19,378 (000)
issue stocks and bonds = $8,000 (000)
to find out
which activity exposes to the most risk of being issued an emergency loan
solution
we know that here generally firm issue bonds to rise funds and bonds is debt for company
firm pay dividend on bond and firm have ability to pay dividend for reflect financial position but when any shortage in cash that time it leads to short term emergency loans
entire inventory liquidating will lead additional cash so that no need of loan and any item and equipment is company choice that is not compulsion so no need emergency loans
so we can say that here correct option is a. Retiring the oldest bond expose company to most risk being issue emergency loan
