1. A bond has a par value of $1,000, a current yield of 7.25 percent, and semiannual coupon payments. The bond is quoted at 97.66. What is the coupon rate of the bond?
14.50%
7.08%
7.97%
7.25%
14.16%
2. In calculating total cash flow to a firm, which of the following is not included?
A. Cash dividends
B. Operating cash flow
C. Additions to net working capital
D. Capital spending