Future values as length of time involved increases

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1. How does a short-term cash flow crisis spiral into bankruptcy for some firms?

2. What happens to future values as the length of time involved increases? What happens to present values as the length of time involved increases?

3. An Exxon bond (par value 100) has a maturity if 14 years and a coupon interest rate of 5.40%. If you require a yield to maturity of 6.1% on similar risk bonds, what is the value price of this bond?

Reference no: EM131962687

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