1. How does accounting differ from budgeting?
2. What is the current value of a $1,000 bond with a 5% annual coupon rate (paid semi-annually) that matures in 9 years if the appropriate stated annual discount rate is 7%.
Please round your answer to the nearest cent.
3. Based on the following information, calculate the expected return. State of Economy Possibility of State of Economy Rate of Return if State Occurs Recession 0.20 -0.07 Normal 0.55 0.13 Boom 0.25 0.30