Firm loses value during bankruptcy process

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1. Find the yield to call on a semi-annual coupon bond with a face value of $1,000, a 12% coupon rate, 20 years remaining until maturity given that the bond price is $1,150 and it can be called 10 years from now at a call price of $1,050.

2. Do you think government and non-for-profit organizations should perform capital budgeting analysis for their funded projects? Why?

3. For the company General Electric, using the President/CEO’s Letter from the Annual Report and analysts’ estimations of the future performance, discuss the outlook of the company. This analysis should be about a paragraph in length.

4. Explain how a firm loses value during the bankruptcy process from both a creditors and a shareholders perspective.

Reference no: EM131902321

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