What is the modified duration of this bond

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1. Suppose that you have a three-year bond which has a 6 percent coupon rate, has a $100 face value, and pays annual coupons. Market yields for this type of bond are 4 percent. What is the modified duration of this bond?

2. Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 14 percent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent. What is the company’s WACC?

3. What is the role of the material covered in Financial Management in keeping the US economy competitive in world markets?

Reference no: EM131994753

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