Assume that you purchase a $1,000 corporate bond that pays 10.75% interest. What is the amount of interest that you receive each year? O a. $100 O b. $1,000 O c. $107.50 O d. $10.75 O e. $53.75 A firm is trying to determine whether they should purchase or lease a new delivery vehicle. The cost to purchase the vehicle today is $35,000. They have determined the following: PV of the CCA tax shield = $5,000 PV of the salvage value = $3,000 Annual before tax lease payments at the start of each year for 6 years = $8,000/year Tax rate= 40% After tax cost of borrowing = 7% Should they lease or buy the asset? O a They should lease the vehicle, since the NPVlease = $13,801.58 O b. They should buy the vehicle, since the NPVlease = - $2,519.05 O c. None of the answers are correct (show your work for part marks) O d. They should lease the vehicle, since the NPVlease = $2,519.05 O e. They should buy the vehicle, since the NPVlease = - $13,801.58