A zero coupon bond is selling for $476. The bond has a face value of $1,000 and matures in 8 years. Your friend
asks you if he should buy the bond. He tells you his required return is 9 percent.
Would you recommend he buy
the bond or not? Explain your answer.
The yield to maturity on the zero coupon bond is ($1,000/$476)1/8 - 1 = 9.7%. Therefore, your friend should buy the
bond.
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Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team
The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis
A change in the tax rate will not affect the break-even point
Indicate whether the statement is true or false