1. A company reported the following for a given year: Sales = $5,600,000; Expenses = $3,000,000; Depreciation = $190,000; Interest Expense = $80,000. If the corporate tax rate is 35 percent, calculate the company's net income for that year.
A. $1,638,000 B. $2,330,000 C. $1,566,500 D. $1,514,500
2. Consider a zero-coupon bond with face value of $1,000 and 5 years to maturity. The bonds yield to maturity is 9%. What is its duration?
a. 9.00
b. 1.09
c. 1.90
d. 5.00
Please show the process