Possibly affect our international business

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1. We have a 10%, 25 year bond, which sells for $1100. If the firm has the right to call it back after 16 years at par plus half a years coupon. Compute the YTM and the YTC. Which will the investor attain? Please show work and equation.

2. What is capital budgeting? Discuss why capital budgeting decisions by managers are risky?

3. Discuss the political risk factors, and identify those that could possibly affect our international business. Explain how our cash flow could be affected.

Reference no: EM131861680

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