Solution:
A market interest rate for specific type of bond is classified as bonds required rate of return.

Solution:
Depreciation is include in costs in case of Accounting rate. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.

Solution:
Financial management is dispensable in any organization as it helps in taking sound financial decisions, proper use and allocation and improving the profitability of funds.

Solution:
Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as retained earnings. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

Solution:
The value of bond depends on the coupon rate, years to maturity and expected yield to maturity.

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