Corporate Finance 2
Assignment 2 Chapter 10 30 marks total
1) Award: 2.00 points
A 4-year bond pays 4% annual interest (paid semi annually). It currently sells for $872.25. What is the bond's
yield to maturity?
10-1. The valuation of financial assets is based on the required rate of return to security
holders. This, in turn, becomes the cost of financing (capital) to the corporation.
10-2. The valuation of a financial asset is equ
Corporate Finance Two
Award: 5.00 points
What is the present value of: (Use a Financial calculator to arrive at the answers. Round your final answers to
nearest dollar amount.)
aa) $8,000 in 10 years at 6
Chapter 13: Risk and Capital Budgeting
Risk and Capital Budgeting
If corporate managers are risk-averse, does this mean they will not take risks?
Risk-averse corporate managers are not unwilling to take risks
ASSIGNMENT CLASSIFICATION TABLE
1. Describe the advantages and
illustrate the impact of issuing
bonds instead of common
1, 2, 3, 4,