Calculate the operating and cash cycles

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1. Suppose that General Electric has a bond issue that has 10.00 years until maturity. The bond pays a 6.00% annual coupon rate and has a face value of $1,000. If investors currently want a 4.00% annual return to hold the bond, what is the trading price of the bond today?

2. A zero coupon bond will mature in three years. The bond will be redeemed for $1,000 at that time. If investors are looking for a 6.00% annual return to hold the bond, what will the bond trade for today?

3. In what respect is preferred stock similar to bonds, and in what respect is it similar to common stock? Please use examples to better demonstrate your explanations.

4. Consider the following financial statement information for the Rivers Corporation:

Calculate the operating and cash cycles.

Reference no: EM132050222

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