The FAMA Company has two bond issues outstanding. Both bonds pay $100 annual interestplus $1000 face value at maturity. Bond L has a maturity of 15 years, and Bond S has a maturityof 1-year. What will be the value of each of these bonds when the going rate of interest (yield to maturity)is: A) 8% B) 12% Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1-year)?

Which of the following statements is CORRECT? a. If a coupon bond is selling at par, its current yield equals its yield to maturity. b. If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity. c. If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond. d. If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium. e. If a coupon bond is selling at a premium, its current yield equals its yield to maturity.

1. (30 marks) Module 5 related Go to the Tesla Inc. website, or another source, and find the most recent six years of financial statements from their annual reports. Present in a table and a graph the dollar amounts for Revenue, Cost of Goods Sold, Research and Development Expenses, and Earnings Before Tax. Also, calculate the C of GS / Revenue ratio, the R & D / Revenue ratio, and EBT / Revenue ratio for each year. a. Do you see a pattern for revenue over the last six years? Explain. b. c. Do you see a pattern for the C of GS and R&D expenses over the last six years? Explain. Look at the three ratios you have calculated. What do you observe? Have they changed over time? Are they getting better or worse? Explain.

4. (10 marks) Short Essay Question Assume you are the CEO of a company that intends to issue $20 M in new bonds to help finance an expansion of your manufacturing facilities. A new employee eager to catch the ear of the CEO suggests that by lowering the coupon rate of interest on the bond you will be able to reduce interest payments on the debt, and therefore interest expense on the Income Statement, thus increasing overall profitability. Is the rationale for this suggestion a good one? Explain.

a) What are the main characteristics of money market instruments? b) Who are traditionally expected to be the main issuers and holders of money market instruments? How has this changed in recent times? (5 marks) c) The rate of discount is given as d = (R-P)/R.n Where R is redemption value, P is initial price and n is time to redemption If the current rate of discount on treasury bills is quoted at 3 per cent Calculate the price of newly issued 13 week treasury bill, redemption value £500,000 If interest rates stay the same, what will happen to the price as the instrument approaches maturity? (5 marks) What would happen to the price if interest rates rose? Demonstrate by calculating the price were interest rates 4% (5 marks)

Suppose Dillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 face value, a 10% coupon rate, and semiannual interest payments. a) Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell? Suppose that further that the interest rate remained at 6% for the next 8 years. What would happen to the price of the bonds over time? Explain after the issue date (as in part a) interest rates fell to 6%. Suppose

3. Last year X-Co's sales fell 10%, but its net profit fell 69%. In a few words, what is the most likely explanation for this disparity?

8. For a corporation, a bond is a ____obligation, but management of a corporation has a ____duty to its common shareholders.

Using the information below, calculate the cash to cash cycle (round to the nearest tenth for all of the cash to cash elements and use 360 days per year). Sales are $90,000,000.Beginning inventory is $1,600,000.Cost of Goods Sold is $59,500,000. Group of answer choices -31.7 92.2 109.6 -48.0