Question: QUESTION 4. Answer briefly the following questions: a) Write the formula of the Price-Earnings ratio and explain how a result of 11 should be interpreted.

QUESTION 4. Answer briefly the following questions: a) Write the formula

QUESTION 4. Answer briefly the following questions: a) Write the formula of the Price-Earnings ratio and explain how a result of 11 should be interpreted. b) Write the equation for the PV of 200.000 to be received two years later when the market interest rate is forecast as 17%. c) Define the yield to maturity of a 4-year maturity bond whose face value will be repaid at the end of the maturity. d) Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal installments

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