1. Would a company prefer to use MACRS or straight line depreciation. Be sure to justify your position.
2. You deposit $8,000 into an account that pays 3.9% interest. What is the balance in the account after 4 years if interest is compounded semiannually?
3. A company offers an 8% coupond bond and a yield to maturity of 10%. The bond matures in 7 years. What is the market price of the bond?