Analyze the information in Appendix B of the Tanglewood Case and prepare a report showing the results of the analysis for your director. This report should be complete but concise. The report should be written as if your audience is the company director, not a college professor.
Review the Learning Resourses materials under the Course Resources. Explore the resources available, view demos/tutorials and read the guides. In 250/300 word response, discuss how these resources will be of value to you in your program at Ashford. Use at least one resource to support your key points.
Resources are attached please use one for this discussion to discuss.
Specific Instructions:Please see attached business case to prepare investment proposal. You are allowed to make reasonable assumptions in order to complete the assessment.
Use attached investment proposal to complete appraisal.
Please use the Benefit/Cost Ratio method to do appraisal.
Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume
$100 face value bond). Investors believe there is a 20% chance that Grummon will default on these bonds. If Grummon does default, investors expect to receive only 50 cents per dollar they are owed. If investors require a 6% expected return on their investment in these bonds,
A. What will be the price of these bonds?
B. What will be the yield to maturity on these bonds, assuming the default does not materialize?