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Question 11 1.25 points Save Answer MNK corporation has the following market value balance sheet structure: Assets Liabilities and equity Certificate of deposit Cash S1

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Question 11 1.25 points Save Answer MNK corporation has the following market value balance sheet structure: Assets Liabilities and equity Certificate of deposit Cash S1 000 $10 000 Bond $10 000 Equity Total liabilities and equity $1 000 $11 000 Total assets $11 000 The bond has a face value of $10000, 10-year maturity and a fixed-rate annual coupon of 10 percent. The certificate of deposit has a one-year maturity and a 6 percent fixed rate of interest. MNK expects no additional asset growth. If market interest rates had decreased 200 basis points by the end of year one, what would be the market value of equity assuming that Cash and Certificate of deposit remain at the same value? A.3.328.56 B. 829.15 OC. 2.249.38 D.4.320.28

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