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An answer of 1-3 sentences for each question should suffice

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An answer of 1-3 sentences for each question should suffice.

• A: All else equal, do bonds with longer or shorter terms to maturity have higher duration? What about coupon rates, do bonds with higher or lower coupon payments have higher duration (all else equal)?
• B: What commonly used method did we discuss to forecast key financial items such as COGS expenses?
• C: Describe how to compute ending loan balance each time period on a loan amortization schedule.
• D: We discussed that we could use a simulation approach to evaluate the merits of a project given uncertainty about future cash flows. What two metrics do we primarily rely on when evaluating whether or not to accept the project in this setting? What values should these metrics take for us to accept the project?
• E: What is the general model we primarily rely on (in this class) to estimate the value of common stock?
• F: Is it generally advisable to conduct a sensitivity analysis when computing a proposed project’s NPV? Why or why not?
• G: What is the most important method when assessing whether to invest in a project? What is the key decision rule for this method (assuming the project is independent)?
• H: What interest rate is used to discount bond cash flows to compute bond price?