1. 10 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The current interest rate on this type of bond is 5.72 percent, compounded annually. What is the current price of the bond?
2. Pharrell, Inc., has sales of $591,000, costs of $267,000, depreciation expense of $68,000, interest expense of $35,000, and a tax rate of 30 percent. What is the net income for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)