Question: BKM Ch 1 0 problems 3 , 5 , 1 2 , 3 2 , 3 7 What would be the likely effect on a
BKM Ch problems
What would be the likely effect on a bond's yield to maturity would it increase, decrease, stay same, or is the
change uncertain of:
a An increase in the issuing firm's timesinterestearned ratio?
b An increase in the issuing firm's debtequity ratio?
c An increase in the issuing firm's quick ratio?
A zerocoupon bond with face value of $ and maturity of five years sells for $
a What is its yield to maturity?
b What will happen to its yield to maturity if its price falls immediately to $
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