1. Recommend specific risk coverages for your client and for each recommendation state your supporting rationale.
2. Lycan, Inc., has 8 percent coupon bonds on the market that have 8 years left to maturity. The bonds make annual payments and have a par value of $1,000.
If the YTM on these bonds is 10 percent, what is the current bond price?
3. Using multilateral netting in international businesses helps firms _____.
A. avail tax credit from governments
B. reduce the fixed costs of establishing a subsidiary
C. reduce the transaction costs
D. establish a tax heaven within its network