1. You own a “zero” which pays annually and the yield is currently 8%. If the price of the bond is $495, what is the number of years to maturity?
9.14 years
17.9 years
8.96 years
7.22 years
None of the above
2. Financial managers monitor disbursement float and collection float. INCREASING disbursement float is sometimes accomplished by -
Delaying payments to suppliers
Establishing a lockbox system to reduce the time it takes to collect receivables and process and clear customer checks
Investing free cash flow in Marketable Securities
Extending credit terms to encourage sales