I. Why does the bond sell at discount when coupon rate is lower than required rate of

return?

II. Why Capital Budgeting techniques are used by a financial Analyst?

III. How economic profits are different from the accounting profits?

IV. What is meant by the cost of capital in EVA. Write down the formula of EVA..

V. How call provision and call protection period help the bond holder?

VI. If the bond is zero coupon bond then why investor purchase the bond.

VII. Why firm needs to maintain its working capital? Identify the parts of working capital.