1. You purchased a zero coupon bond one year ago for $112.10. The market interest rate is now 9 percent. If the bond had 24 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding.
2. If your company had a return on assets of 15% and the industry norm was 12% what does that mean?
3. In boom times, interest rates tend to be high, all else the same. In recessionary times, interest rates tend to be low, all else the same. How is this consistent with the productivity of capital's influence on interest rates?