1. Why is financial risk analysis important to a capital investment decision? Minimum 250 words with references.
2. Suppose a? five-year, $1,000 bond with annual coupons has a price of $900.46 and a yield to maturity of 6.2%. What is the? bond's coupon? rate?
3. Suppose a stock had an initial price of $70 per share, paid a dividend of $1.3 per share during the year, and had an ending share price of $79. Compute the percentage total return.