Answers to Concepts Review and Critical Thinking Questions
Time trend analysis gives a picture of changes in the companys financial situation over time.
Comparing a firm to itself over time allows
SSU Fin 351 Chapt. 8 HW Solutions, S., 2016
INTEREST RATES AND BOND VALUATION
Answers to Concept Questions
No. As interest rates fluctuate, the value of a Treasury security will fluctuate. Long-term Treasury
securities have substantial intere
Maxim Perepelitsyn Assignment Corporate Finance
1 For a given amount, the lower the discount rate, the less the present value.
A) True B) False
2 What is the NPV of a project that costs $100,000 and returns $45,000 annually for three years if
interest payments increase, because the higher coupon rate, the higher interest rate, n
the price of the bond increases
pays 97.5% of face value for the bond