A 50000 face value strips matures in 12 years and has a


1. A $50,000 face value STRIPS matures in 12 years and has a yield to maturity of 6.50 percent. What is the current dollar price of this security?

$21,199.68

$23,206.44

$25,038.18

$26,141.41

$28,809.18

2. How would you interpret a current ratio of 2.2 with an industry average of 3.1?

The company is 2.2x more liquid than the industry.

The company is on the verge of bankruptcy.

The company turns its sales into cash at a rate of 2.2x per year.

The company has $2.20 in current assets for every $1 in current liabilities.

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Financial Management: A 50000 face value strips matures in 12 years and has a
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