1. What is the rate of return for an investor who buys a 3-year bond with a 7% coupon at a YTM of 5% and sells the bond 1 year later at a YTM of 6%?
2. A firm has current assets of $1,191,314.00 and net fixed assets of $3,937,872.00. The firm has current liabilities of $799,379.00, and total shareholder equity of $2,947,146.00. How much long term debt should the firm have to support its assets?