1. An investment will pay you $49,000 in 10 years. If the appropriate discount rate is 7.6 percent compounded daily, what is the present value?
2. Airfoil, Inc. has issued a bond with the following characteristics: Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate 6.00% Coupons per year 2 Yield to maturity 6% What is the price of the bond?
3. What kind of firms are most likely to be influenced by free cash flow issues when choosing a capital structure?