1. A supplier offers payment terms to its customers of 1.5/30 net 60. What is the effective annual rate of the discount being offered to its customers?

2. A bond priced at $1,030 ($1,000 par value) currently has a yield to maturity of 4.913% and an annual coupon rate of 6% (paid semi-annually), How many years are left until the bond matures?

3. A company releases its latest quarterly earnings report. The report details extremely negative developments for the firm that will adversely impact its cash flows in both the short-term and for many years to come. As a result, which of the following outcomes will most likely occur for the firm's outstanding bonds?