1. According to the tactical decision making guidelines, only relevant costs should be considered. What is a relevant cost, and how does one determine relevance? Explain why it might be difficult for decision maker to ignore sunk costs. Support your position with references.
2. A 20 year, 10% annual pay bond has a par value of N1,000.00. what is the price of the bond if it has a yield to maturity of 15%? An analyst observes a 5 year, 10% semiannual pay bond. The face amount is N1,000.00. The analyst belives that the yield to maturity on a semiannual bond basis should be 15%. based on this yield estimate the price of this bond would be?