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hello this is my past year paper questions. Could u please help me with this. Question 5 (a) Consider the following pair of bonds which

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hello this is my past year paper questions. Could u please help me with this.

Question 5 (a) Consider the following pair of bonds which are alike except for the characteristics listed. Bond A 8% Bond B 6% Coupon rate Maturity 5 years 8 years Discuss which bond should have the higher yield to maturity. (5 marks) --AIRHERRE Page 4 of 5 Examination - July Semester 2019 (b) The following financial information relates to XYZ Company: Inventory: The company practises just-in-time inventory management and carries a negligible amount of inventory. Account receivable turnover = 6 times Account payable turnover = 4 times For simplicity, we assume that a year consists of 360 days. (i) Calculate the operating and cash cycle for XYZ Company. (6 marks) (ii) Evaluate the implications of the cash cycle for XYZ's working capital management. (4 marks) (c) You borrow $5,000 and have to pay $5,300 six months later. Calculate the effective annual rate of this loan

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