6. Storico Co. has two types of coupon bonds outstanding. Bond A is a 7-year 6 percent annual coupon bond with $1000 par value selling for $972.58. Bond B is a 5-year 7 percent annual coupon bond with $1000 par value. Assume that bond A and bond B have the same yield to maturity, what is the price of bond B? A. $936.91 B. $972.58 C. 1000.00 D. 1020.78 E 1042.12 7. All else equal, which of the following bond has a higher yield? A. Tax-exempt bond rather than a taxable bond B. An investment-grade bond rather than a junk bond C. Bond that can be sold quickly in the market vs. bond that can be sold slowly D. Bond with a call provision vs. bond without one E. Bond with protective covenants rather than a bond with no covenants 8. Refer to the table below for current US corporation federal tax rate. Corporation Growth has $80,100 in taxable income. The company's average federal tax rate is Taxable income Tax Rate $0 - 50.000 1996 50,000 - 75.000 25% 75.000 - 100.000 19 100.000 - 335,000 39% 335.000 - 10,000,000 10,000,000 - 15,000,000 35% | 15,000,000 -18,333,333 38% 18,333,333 + 35% A. 19.3% B. 25% C 34% D. 35% E 39% 9. Andre's Bakery has sales of $687,000 with costs of $492,000. Interest expense is $26,000 and depreciation is $42.000. Dividend paid out is $20,000. The tax rate is 35 percent. What is the net income? A. $42.750 B. $62,550 C. $82,550 D. $86,450 E $124.550 10. SDJ, Inc., has current asset of $6.000, current liabilities of $2,000, and inventory of $1.000. The quick ratio is A. 1 B. 2 925 D. 3 E. 4