13. Which statemenn is the best description for a bond promised yield-to-maturity and the actual ex post rate of return

a. The actual ex post ROR exceeds the promised yield-to-maturity when you sell a bond before it matures and the YTM at time of sale is the same as when it was purchased.

b. The actual ex post ROR exceeds the promised yield-to-maturity when you sell a bond before it matures and the YTM at time of sale is less than the YTM when it was purchased

c. The actual ex post ROR falls below the promised yield-to-maturity when you sell a bond before it matures and the YTM at time of sale is less than the YTM when it was purchased.

d. The actual ex post ROR falls below the promised yield-to-maturity when sell a bond before it matures and the

YTM at time of sale is the same as when it was purchased.

e. The actual ex post ROR falls below the promised yield-to-maturity when you own the bond until maturity and receive all expected cash flows.

14 The Pixalator Corporation has 8,000 obsolete units of a product that are carried in inventory at a manufacturing cost of $160,000. If the units are remachined for $40,000, they could be sold for $ 72,000 after a year . The cost of capital is 6 % . Alternatively , the units could be sold , for scrap for $28,000. Which alternative is more desirable and what are the total relevant costs for that alternative

a. Remachine: $40,000

b. Remachine: $200,000

c. Scrap: $132,000

d. Scrap; $160,000

e. Scrap: SO