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6. Someone promises to give you Rs.5,000,000 after 6 years in exchange for Rs.2,000,000
today. What interest rate is implicit in this offer?
7. What is the present value of an income stream which provides Rs.20,000 a year for the first 10
years and Rs.30,000 a year forever thereafter, if the discount rate is 14 percent ?
8. What is the present value of the following cash flow streams?
9.
End of year Stream X Stream Y Stream Z
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10. The price of a Rs.1,000 par bond carrying a coupon rate of 7 percent and maturing after 5 years
is Rs.1040.
(i) What is the approximate YTM?
11. The market value of a Rs.1,000 par value bond, carrying a coupon rate of 10 percent and
maturing after 5 years, is Rs.850. What is the yield to maturity on this bond?
12. A company's bonds have a par value of Rs.100, mature in 5 years, and carry a coupon rate
of 10 percent payable semi-annually. If the appropriate discount rate is 14 percent, what
price should the bond command in the market place?
13. Explain Role of the Financial Manager.
14. Discuss Debentures as Sources of Long-Term Finance.
15. Explain financial Management is Important to carry out any business.