Topic 3 - Capital Raising & Evalution Of Securities

Question 1

How do firms raise money?

Answer 1

• Angel finance (investor who provides money for a start up of a business)
• non - securities debt
• venture capital
• listing on the stock market

Question 2

What is a Bond Yield to redemption?

Answer 2

• it is a constant rate of interest that discounts the bond’s future payments to its current price