1. A bond currently sells for $975, which gives it a yield to maturity of 6%. Suppose that if the yield increases by .25%, the price of the bond falls to $960. What is the duration of this bond? Round your answer to three decimal places. (Hint: the percentage price change is a function of duration and change in yield)
2. Why must the price of a security always equal the PV of its cash flows?
3. Are accounts receivable considered part of current assets in current ratios?