1. Describe the advantages enjoyed by multinational enterprises.
2. You are purchasing a 30 year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price?
a. $65.67 b. $78.15 c. $97.55 d. $135.78 e. $182.80
3. Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.0%, at what price should the bonds sell?
a. $802.25 b. $775.81 c. $1,013.84 d. $1,040.28 e. $881.60