A lottery winner was offered a payment of $31,500 for 30 years or a lumpsum payment of 500,000 . She could invest the cash flows at 5.5 percent. What should she do? She should take the annuity because it is valued at $500,00 She should take the lump-sum because its value is less than the annuity She should take the annuity because it is valued at $457,813 She should take the lump sum because it is greater than $457,813 Jorge Cabrera paid $1,100 for a 15 -year bond 10 years ago. The bond pays a coupon of 8 percent semiannually. Today, the bond is priced at $1,332.95. If he sold the bond today, what would be his realized yield? none of these 10.36% 8.65% 10.36% 4.32% Beckham Corporation has semiannual bonds outstanding with nine years to maturity that are currently priced at $794.08. If the bonds have a coupon rate of 6 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 27 percent? Complete the calculation using the effective annual yield (EAY) for the bond. \begin{tabular}{l} \hline 6.89% \\ \hline 6.29% \\ \hline none of these \\ \hline 7.06% \\ \hline 6.14% \end{tabular}