Relationship between interest rates and bond prices

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1. Explain, in detail, the relationship between interest rates (i.e. yield to maturity) and bond prices.

2. Calculating Future Values?Compute the future value of $3,550 compounded annually for: 10 years at 6 percent. 10 years at 8 percent. 20 years at 6 percent. Why is the interest earned in part (c) not twice the amount earned in part (a)? Please show work

3. ABC Sales Corporation has $200 million in total assets, of which $20 million is current assets; $5 million in notes payable; $25 million in long term debt; and $40 million net profit before taxes. What are the following ratios? A. return on investment profit ratio B. Debt-to-Asset leverage ratio C. Current Liquidity ratio.

Reference no: EM132037994

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