1. Which is a more meaningful profitability measure for the companys investors -- return on

assets or return on equity? Explain

2. SJU Corp. issued a 15 year bond at a price of $1,000 exactly one year ago in the US. The

bond pays an annual coupon rate of 8% and the coupon interest is paid every six months.

If the current market interest rate for this class of bond is 7%,

a. what is the value of the bond right now?

b. what was the market interest rate for the bond one year ago (Hint: no calculations

needed)?