Author Question: Calculate the current value of Bond M if the time of maturity is six years. (See Table 6.2) What ... (Read 69 times)

tiara099 · **on:** Jul 10, 2018

Calculate the current value of Bond M if the time of maturity is six years. (See Table 6.2)

What will be an ideal response?

Question 2

Of the following activities, which is MOST likely to be an interaction between the financial manager and the information systems manager?

A) Developing a system to bill customers, pay suppliers, and track inventory
B) Costing of products
C) Setting credit policies
D) Determining the appropriate pricing of products

sarahccccc · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

The bond is at par, or 100, because the annual coupon interest rate is equal to the required rate of return.

Answer to Question 2

Answer: A
Explanation: A) Costing of products is done in conjunction with the manufacturing manager. Determining the appropriate price for products and setting credit policies is a result of collaboration with the marketing department. IT works on billing, paying, and tracking.