1. An 8 percent coupon bond with a $1,000 face value matures in 13 years, pays interest semi-annually, and has an annual yield to maturity of 9.45 percent. What is the current market price of the bond?
a) $601.58
b) $647.76
c) $892.76
d) $909.09
e) $930.75
2. Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? (3 points) Equipment cost (depreciable basis) $70,000 Sales revenues, each year $35,500 Operating costs (excl. depr.) $25,000 Tax rate 35.0%
a. $9,223
b. $10,163
c. $8,540
d. $8,882
e. $6,747