Explain in detail the relationship between interest rates


1. Explain, in detail, the relationship between interest rates (i.e. yield to maturity) and bond prices.

2. Calculating Future Values?Compute the future value of $3,550 compounded annually for: 10 years at 6 percent. 10 years at 8 percent. 20 years at 6 percent. Why is the interest earned in part (c) not twice the amount earned in part (a)? Please show work

3. ABC Sales Corporation has $200 million in total assets, of which $20 million is current assets; $5 million in notes payable; $25 million in long term debt; and $40 million net profit before taxes. What are the following ratios? A. return on investment profit ratio B. Debt-to-Asset leverage ratio C. Current Liquidity ratio.

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Financial Management: Explain in detail the relationship between interest rates
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