1. There is a callable bond that pays coupons annually and forever. It is callable at 1175, and the one-year market interest rate is currently 9%. LT interest rates after one year will be 10% (p=60%) or 8% (p=40%). What is the coupon rate that would make the issue price = $1000?
2. What is Lee Company's cash cycle using the following information. make sure to explain it's meaning (show calculations). Sales= $100,000 Cost of goods sold= $68,000 Account receivable= $30,000 Inventory= $25,000 Account Payable= $45,000.