1.Ivanhoe Corporation purchased a special tractor on December 31, 2017. The purchase agreement stipulated that Ivanhoe should pay $19,550 at the time of purchase and $4,980 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2017, at what amount, assuming an appropriate interest rate of 12%?

2.What would you pay for a $225,000 debenture bond that matures in 15 years and pays $11,250 a year in interest if you wanted to earn a yield of 3%