1. When considering a capital budgeting process, what steps must be taken to ensure a successful outcome? In other words, what must be done to perform a capital budgeting analysis? Make sure to back your statements up with facts.
2. Suppose you have a 5% coupon bond with a ytm of 3 percent and a term-to-maturity of 3 years. The bond pays its coupon ANNUALLY (once per year) and has a face value of $1,000. What is this bond’s price? What is it duration.