How useful are financial statements in planning

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Problem

ANSWER ALL Qs BELOW. THANK YOU

1 What is the price of a three year bond with a coupon of 5% when yields (interest rates) are 3%?

2 You hold a four year bond with a price of 97.6% and a coupon of 4%. What is the Yield to Maturity of the bond?

3 What is the EAR if you have a credit card that charges 11% per annum with monthly compounding?

4 You have a four year bond with a coupon of 8% and interest rates are 9%. Show how the gross redemption proceeds can be made immune from a 1% shift in interest rates with calculations to demonstrate what you have stated.

5 How useful are financial statements in planning your company's future financial needs? When are they a good starting point and when are they less useful?

Reference no: EM131959362

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