1. How can a business owner plan asset acquisitions to fully utilize the Section 179 deduction?
2. What is the effective interest rate of a semiannual pay bond with a YTM or nominal yield of 8%? As the number of compounding periods increases, what effect does it have on the effective interest rate?
3. A 20-year bond with an 8% coupon pays a semi-annual coupon payment of $40 every 6 months. What is the price of the bond? The yield to maturity is 5%.