1. Suppose that today you buy a bond with an annual coupon rate of 9percentt for 1120. the bond has 12 years to maturity. assume par value of 1000. assume semiannual compounding periods. what is the yield to maturity at the time of purchase?
2. Discuss accounting concepts, capital, and cash management.
3. Discuss strategic financial planning.
4. Bob is considering the purchase of a 2-year call on the ? corporation whose shares are now priced at 90. ? pays a midyear dividend of 3 per share each year. The continuously compounded risk free rate is 4%, and the volatility of ? is .32. Assuming the Black-Sholes formulas apply, determine the price of a 2-year 94-strike call on ?.