The firm must prepay the interest at the beginning of the


1) King Noodles' bonds have a 7.5% coupon rate and a $1,000 par value. Interest is paid semi-annually. The bond has a maturity of 8 years. If the (bond equivalent) yield on similar bonds is 6.6%, what is the value of King Noodles' bonds?

2) ABC borrows $1 million at 14% interest from the bank. The firm must prepay the interest at the beginning of the year. The principal is repaid at the end of the year. What is the approximate yield of debt?

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Basic Computer Science: The firm must prepay the interest at the beginning of the
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