1. Creskill Corp has a debt-total asset ratio of 42 percent and return on total assets of 9 percent. Compute the return on equity.
2. How do you find the present value of future cash flows?
3. What resources should the new head of Investor Relations ask for? What are the biggest challenges for Investor Relations?
4. Find the convexity of a seven-year maturity, 8.4% coupon bond selling at a yield to maturity of 9.4%. The bond pays its coupons annually. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Convexity