Question: Please please your help with all these question, I appreciate it! 1-you own a bond with 30 years left to maturity and a coupon (interest)
Please please your help with all these question, I appreciate it!
1-you own a bond with 30 years left to maturity and a coupon (interest) rate of 10%. If market rates rise to 11% (assume$1000 face value of bond), what would you have to sell the bond for?
2- your company's new product looks very successful based on the analysis you have done, but 20% of the projected sales comes from cannibalizing another product your company makes. What does that mean?
3- you own a bond with 25 years left to maturity and a coupon (interest) rate of 7%. What price would you have to sell it for if rates fell to 6% (assume $1000 par value)
4-why are standard corporate bonds not the best type of investment for young people?
5-why is financing your company by using high levels of debt risky? Please explain fully
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