Help Save & Exit Su 3 As shown in the PowerPoint, on April 28th, 2014, Canada sold $1.5 Billion of 50-year bonds carrying a 2.75% coupon. If we assume that on April 28th, 2024, the YTM on these bonds has risen to 6%, and given that there is still 40 years before maturity, what price will each $1,000 bond sell for? 13:28 Multiple Choice $608.24 $1,000.00 $765.22 $509.24 C 2 Use the following information for Questions 42 - 50 Rick George, Director of ticket sales for Translink, recently put out an RFQ for the supply of new ticketing machines for Skytrain. Translink needs to purchase Thirty (30) new ticketing machines each year for the next five years. In order to bid on the project, you will need to acquire $750,000 of new, specialized metal forming equipment. This equipment is a class 8 asset with a 20% CCA rate, calculated using the Accelerated Investment Incentive method. You believe that you will be able to sell the new equipment for $100.000 at the end of the project. It will cost you $5,000 in labour and supplies to produce each ticketing machine and your fixed overhead will cost $100,000 per year. Net working capital will rise by $50,000 initially but this will all be recovered at the end of the project. Your firm's tax rate is 40% and the firm's cost of capital is 20%. How much should we bid to produce each new ticketing machine? The correct value to use for Step #1 - the PV of the initial cost, is: 2:26:56 Multiple Choice S-800.000 S-550,000 Help Save & Exit Submit 71 Use the following information for Questions 39 - 41. In Chapter 12, we looked at some long-term data on returns in both the stock and the bond market. This data was from Jeremy Siegel's books, "The Future for Investors" and "Stocks for the Long Run". Siegel tells us that, over the period from 1802 - 2005, the long run average real return in the US equity market is 6.8% and it is 3.5% in the bond market. Based on Siegel's data, answer the following three questions Based on Siegel's data, with long (30 year) holding periods, which of the following asset classes has the smallest risk, as measured by standard deviation? 02:27:03 Multiple Choice Common stock It is impossible to know Treasury Bills