What is your expected rate of return

Assignment Help Financial Management

Reference no: EM131241394

1. What is an advantage of adding a convertibility feature to a bond?

2. A house up for auction can be worth either $500,000 or $1,000,000 with 50-50 probability. The other bidders know the true value; you do not. If you bid for the house in an auction, what should you bid? If you bid $750,000, what is your expected rate of return?

Reference no: EM131241394

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