Question: a -Why does the bond sell at discount when coupon rate is lower than required rate of return? b -Why Capital Budgeting techniques are used

a -Why does the bond sell at discount when coupon rate is lower than required rate of return?

b -Why Capital Budgeting techniques are used by a financial Analyst?

c- How economic profits are different from the accounting profits?

d -What is meant by the cost of capital in EVA. Write down the formula of EVA..

e -How call provision and call protection period help the bond holder?

f -If the bond is zero coupon bond then why investor purchase the bond.

g -Why firm needs to maintain its working capital? Identify the parts of working capital.

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