raft a brief memo to the president to explain why cash decreased during such a profitable year
January 3, 2018
Did Chrisman generate sufficient cash from operations to pay for its investing activities?
January 3, 2018

I) What is the price of the bond?

Finance Basics

A local radio station issues a one-year zero-coupon bond. The face value is 1000. You believe that the probability of bankruptcy is 8%. The appropriate discount rate (taking into account the risk of the investment) is 1.5%.

I) What is the price of the bond?

II) What is the YTM of the bond?

III) If the 1-year risk-free rate is 1%. what is the yield spread?

 

"Are you looking for this answer? We can Help click Order Now"