Use to evaluate stock for investing on the stock

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1. It has been asserted that commercial banks are essentially fragile institutions. Why is this so? Also, why in the recent financial crises did virtually no runs occur on commercial banks even though investment banks found themselves in significant trouble?

2. Find a bond price if it matures in 16 years and pays interest annually. The coupon rate is 9.75 percent and $1,000 face value. Currently, the market interest rate in a similar risk investment is 11.62 percent. (show work)

3. What models do you generally use to evaluate a stock for investing on the stock? Is it useful for your equity investments?

Reference no: EM131883029

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