Discuss importance of option expense reporting

Assignment Help Financial Management

Reference no: EM132053703

1. Consider two semiannual bonds, A and B, of similar risks. Bond A has a coupon rate of 5.00% with 5 years to maturity and par value of $1000 that is currently selling for $1000. Bond B has a coupon rate of 8.00% with 10 years to maturity and a par value of $1000. What is the price of Bond B?

2. Discuss the importance of option expense reporting within the income statement by the company. It is a very big issue for a prospective investor, yet some companies do not practice this reporting. Why??

3. What is the payback period for a project with $25,000 initial cost, cash inflows of $5,500 per year for 6 years, (round to the nearest 0.1)

Reference no: EM132053703

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