Liquidity management and capital adequacy management

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1. The company issued 20 year bonds, 3 years ago at a 7% coupon rate. The bonds make interest payments semi-annual. If investors require a 10% return, how much should the bonds sell for?

2. What’s the interest rate of a 5-year, annual $4,100 annuity with present value of $15,500? (Round your answer to 2 decimal places.)

3. Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management, credit risk management, interest-rate risk management.

Reference no: EM132012553

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