a Business Finance NO KEYS Summer 2020 - Compatibility Mode - Saved to my Mac References Mailings Review View Tell me As 21 AM Alebdi Albed Heating Heading 2 ) ) Heating Emphasis D). 6.8% E). 3.4% 18. A corporate bond currently yields 8.5 percent. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5 percent. At what tax rate would investors be indifferent between the two bonds? a. 35.29% b. 40.00% c. 24.67% d. 64.71% e. 30.04% 19. Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate-Prime rate +2%. Yr. 3 75,000 140,000 800,000 Yr.1 Yr.2 Capital expenditure 250.000 125,000 Cash dividends 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 Assuming the Prime rate - 8% each year. What will be the interest payment at year 2? a. 60,000 b. S70,000 c. $80,000 d. $90,000 e. $100,000 20. What's the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually? $1,819 S1,915 $2,016 $2,117 $2.223 d States) MacBook Pro