6. What is the current price of a coupon bond that was issued 15 years ago, and has 10 years left until maturity. The currently YTM is 6.9% and the bond pays a coupon payment of $32 each six months, based upon a face value of $1,000. a. $953.73 b. $1,421.17 c. $946.62 d. $964.31 7. Which of the following statements is correct regarding credit ratings? a. A bond with a C rating means a bond is safer than a BBB rating. b. A bond with a B rating is investment grade. c. The highest bond rating is a AA. d. A bond rated Ba is speculative grade. 8. Consider a project with expected net cash flows of $23,500 for each of the project's 5 years. Th NINV is $100,000 and the required return is 10%. Given this, what is the profitability index of the project? a. 96 b. 1.06 c. .89 d. 1.175 9. Consider a zero-coupon bond that has 2 years left until maturity. If the bond has a face value of $100, and YTM of 3.5%, what is the current price of this bond? Interest is compounded semi- annually. a. $93.30 b. $96.47 c. $103.50 d. $99.96 10. Consider the deprecation schedule attached at the end of the test. Exactly 3 years ago, you purchased a machine for $500,000 that has since been depreciated as a 5-year MACRS class. Today, you sold it for $300,000. Given this, and a 21% tax rate what is the tax bill? a. $63,000 b. $32,760 c. $11,760 d. $35,820