1. Amazon has a bond with a 10% annual coupon rate, 15 years to maturity and a par value of $1000. The current price is $928.09. Calculate the Yield to Maturity.
2. What is the difference between bid and ask prices for stock? What is the difference between primary and secondary markets?
3. Which of the following statements is not true of short-term financial planning? Which is the correct answer choice?
a. the plan should consider possible shortfalls in sales or delay in collections.
b. the plan seeks to ensure that the company will be able to meet its cash needs.
c. the planning period is typically five years.
d. the plan needs to be based on the best forecasts available.