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Part 2. Answer these questions. Show your work. 2. (3 pts) ABC company has net income of $42,500, depreciation expense of $1,800, interest expense of

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Part 2. Answer these questions. Show your work. 2. (3 pts) ABC company has net income of $42,500, depreciation expense of $1,800, interest expense of $900, taxes of $1,600, addition to non-cash net working capital of $2,300, and capital expenditures of $11,700. What is the amount of Cash Flow from Assets? 3. (7 pts) You purchase a 25-year bond with face value of $1,000 and the coupon rate is 5% paid semiannually. The required rate of return on this bond is is 6%. a. (5 pts) What is the price you are willing to pay for this bond? b. (2 pts) Compared to a 25-year zero coupon bond with face value of $1,000, which one has a higher interest rate risk? Why

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