Suppose that B = $500 and A0 = $470, ? = 9%, r = 4%, ? = 17%, and ? = 0. If T = 8, what is the recovery rate assuming risk neutral default probability?

Most junior loans that are negotiated today are secured from:

A: Private lenders; B: Commercial banks; C: Savings and loan associations; D: Insurance companies.

At the beginning of a partnership, Dharma invests office furniture valued at $14,000, computer equipment valued at $3,000 on which $2,000 is still owed on account, and $10,000 in cash. The amount of Dharma's capital account would be

a. $10,000; b. $15,000; c. $17,000; d. $25,000; e. $27,000