What is moral hazard

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1. What is moral hazard and how does it play a role specifically in the Greek debt crisis?

2. Apple issued a 6 year bond with a par value of $2,000. The annual coupon rate is 2.4% and it pays semi-annually. The yield to maturity is 3.15%. a) What is the purchase price for this bond? b) What is the current yield for this bond?

3. On July 14, Sheffield Company discounted at Sunshine Bank a $8,208 (maturity value), 120-day note dated April 10. Sunshine’s discount rate was 10%. (Use Days in a year table.) What proceeds did Sheffield Company receive? (Use 360 days a year. Do not round intermediate calculations.)

Reference no: EM132063934

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