Q$31$: What is the duration of a two year bond with a face value of $$1000$ and an annual coupon of $9\%$pa if the current yield to maturity is $8\%$pa$?($answer in years, rounded to four decimal places$)$

Q$35$: MNO Inc., a publicly traded manufacturing firm, has provided the following financial information in its application for a loan.

$\backslash$table$[[$Assets$,$$$,$Liabilities and equity,$$],[$Cash$,20,$Accounts payable,$30],[$Assounts receivables,$90,$Notes payable,$90],[$Inventory$,90,$Accruals,$30],[$Plant and equipment,$500,$Long$-$term debt,$150],[,,$Equity,$400],[$Total Assets,$700,$Total Liabilities and Equity,$700]]$

discriminant function, MNO's application for a loan should be approved, ie$.$

$z=1\mathrm{.}2x_1+1\mathrm{.}4x_2+3\mathrm{.}3x_3+0\mathrm{.}6x_4+1\mathrm{.}0x_5$

$z=1\mathrm{.}2(0\mathrm{.}0714)+1\mathrm{.}4(0\mathrm{.}0314)+3\mathrm{.}3(0\mathrm{.}20)+0\mathrm{.}6(2\mathrm{.}67)+1\mathrm{.}0(0\mathrm{.}7143)=3\mathrm{.}104$

where

$x_1=$ working capita$\frac{l}{t}$otal assets $(TA)$

$x_2=$ retained earning$\frac{s}{T}A.$

$x_3=$ EBI$\frac{T}{T}A$

$x_4=$ market value $of$ equit$\frac{y}{l}$ong$-$term debt

$x_5=$ sale$\frac{s}{T}A.$

However, if sales for MNO were $$390,$ the market value of equity was only half of book value, and the cost of goods sold and interest were unchanged, then the credit should be denied because MNO's Z$-$score would fall to $.$ tax credit can be used to offset other tax liabilities incurred by other divisions of the firm.

$($four decimal places$).$ Assume the