Important to firm long-term debt-paying ability

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1. A zero coupon bond has a face value of $1,000 and matures in 5 years. Investors require? a(n) 8 % annual return on these bonds. What should be the selling price of the? bond?

2. In 250 words or more Discuss why profitability is important to a firm’s long-term debt-paying ability. Please cite an sources you use.

3. Why do you think most long-term financial planning begins with sales forecasts? Put differently, why are future sales the key input?

Reference no: EM131835382

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