1. ABC In. issued 20-year bonds seven years ago at a coupon rate of 7.4%. The bonds make semiannual payments. If the YTM on these bonds is 5.7%, what is the current bond price? (Do not round intermediate calculations. Show steps. Round the final answer to 2 decimal places.

2. ABC In. issued 20-year bonds seven years ago at a coupon rate of 7.4%. The bonds make semiannual payments. If the YTM on these bonds is 5.7%, what is the current bond price? (Do not round intermediate calculations. Show steps. Round the final answer to 2 decimal places.

3. You hired ABC consulting firm to analyze the option to expand your sales. According to ABC consulting this is a good idea. You paid $150,000 to ABC Consulting firm for its services. Based on the ABC consulting report to decide to go ahead with the project. The new equipment costs $756,000. This cost could be depreciated at 30% per year (Class 10). The equipment would actually be worth $52,000 in five years. The new equipment will generate a profit of $325,000 per year before taxes and operating costs. Suppose the new equipment requires us to increase networking capital by $15,000 when we buy it. If we require a 15% return, what is the NPV of the purchase? Assume a tax rate of 40%. (Show steps)