Dave invests in a bond that yields 3.50% annual effective for 10 years. The bond pays coupons at a rate of 3.50%, payable semi-annually. It has a redemption value of $75. Mike invests in a 5 year bond. The bond pays coupons at a rate of 14.00%, payable quarterly. It has a redemption value of $150. Mike paid twice the price for his bond compared to what Dave paid. Both bonds have a face amount of $100. Calculate the annual effective yield for Mike's bond.

Why should managers invest any excess cash

Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%