1. A 4.30 percent coupon municipal bond has 12 years left to maturity and has a price quote of 106.30. The bond can be called in eight years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.)
2. How does the depreciation adjustment in OCF compare to the investment in property, plant and equipment on a statement of cash flows?