Reference no: EM132256277 , Length: 1500 Words

Assignment - Answers to Essay questions.

Q1. Define a corporate bond and identify the major characteristics such as par, current yield, and yield to maturity, coupon, and coupon rate.

Q2. Describe a variety of purposes in which corporations use bonds.

Q3. Define the "hedging principle" and explain how this can be used to help manage working capital.

Q4. Discuss the risk/return trade-offs involved with managing cash, accounts receivables and payables, and inventory.

Q5. Describe the four methods of cash float and discuss the trends encountered in the current world in the use of float.

Q6. Which marketable security offers the least risk? The most risk?

Q7. "Autonomy" is a public company that has recently (in the past 3-4 years) been featured prominently in the news as having experienced fraud and/or gross negligence (reporting or accounting), on the part of its management such as Enron, World Com. etc.

Then in an essay of 250-300 words.

a) Describe the company, the affair and discuss how a good system of internal control may have prevented the problem and or detected it sooner.

b) Describe what could have been done differently and by whom.

Note: Use the yahoo finance data obtained and others references are in attached file.

Attachment:- Assignment File.rar