Explaining parent-subsidiary relationship between companies

Reference no: EM1310359

1) 1 year ago, Alpha Supply issued fifteen year bond at par. Bonds have the coupon rate of 6.5% and pay interest annually. Today, market rate of interest on these bonds is 7.2%. How does the price of these bonds today compare to issues price?

2) Differentiate between unique economic functions performed by financial intuitions and financial markets. Briefly explain at least 3 channels or examples of such linkages between financial markets and financial institutions.

3) Parent-Subsidiary relationship between companies develops when one company owns greater than 50% of another company voting stock. Select one:

i) True
ii) False

4) Defined contribution pension plan can subject company to important potential liability as the company is committing to give fixed/established benefits to its employees under plan upon their retirement at some point in the future. Select one:

i) True
ii) False

Reference no: EM1310359

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