1. How much would you pay for this bond today? Take into consideration your own personal risk preferences, interest rates, inflation, and the probability your company will not be able to pay you back in one year. Note: no need for any math equations for this part. Just explain how much you would personally pay for a $1000 bond from this company. ,,2. Based on your answer to the previous question, what would be your discount rate for this bond? Use the present value formulas from the background materials and show your work.,,3. Pick two other companies in the same industry as your SLP company. One should be one that you would pay less for a $1000 bond than you would from your SLP company and another one that you would pay more for a $1000 bond from your SLP company. Explain why you would pay more or less for their bonds.,,Session Long Project Expectations,,This paper will be graded with the following criteria in mind:,,A. Provide a direct answer to all three assignment questions, focus only on these three questions.,,B. Reference all of your sources of information, both within the text as well as with a bibliography at the end.,,C. For all calculations, show all of your work and demonstrate that you understand the steps.,,D. Your paper should be two to three pages in length.,,
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