Provide step by step answers to the following questions.
Other receipts for the couple were as follows: Dividends (all qualified dividends) $2.500 Interest income: Union Bank $ 220 State of Idaho-interest on tax refund 22 City of Boise school bonds 1.250 Interest from U.S. savings bonds 410 (not used for educational purposes) 2017 federal income tax refund received in 2018 2,007 2017 state income tax refund received in 2018 218 Idaho lottery winnings 1.100 Casino slot machine winnings 2,250 Gambling losses at casino 6.500 Other information that the Reyeses provided for the 2018 tax year. Mortgage interest on personal residence $11.081 Loan interest on fully equipped motor home 3.010 Doctor's fee for a face-lift for Mrs. Reyes 8.800 Dentist's fee for a new dental bridge for Mr. Reyes 3,500 Vitamins for the entire family 1 10 Real estate property taxes paid $ 5,025 DMV fees on motor home (tax portion) 1.044 DMV fees on family autos (tax portion) 436 Doctors' bills for grandmother 2,960 Nursing home for grandmother 10,200 Wheelchair for grandmother 1.030 Property taxes on boat 134 Interest on personal credit card 550 Interest on loan to buy public school district bonds 270 Cash contributions to church (all the contributions 6.100 were in cash and none more than $250 at any one time) Cash contribution to man at bottom of freeway off-ramp 25 Contribution of furniture to Goodwill-cost basis 4,000 Contribution of same furniture to listed above Goodwill-fair market value 410 Tax return preparation fee for 2017 taxes 625 Required Prepare a Form 1040 and appropriate schedules, Schedule A, and Schedule B for the comple- tion of the Reyes's tax return. They do not want to contribute to the presidential election cam- paign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. They had qualifying health coverage at all times during the year.MICRO PLASTIC PROJECT ECONOMIE INF. Initial Cost of techology $ 450D, OOD Installation Lost (design | Castruction) $11 1000, DOD Annual cost For Opratug / maintenance $ 3BoiDDD Duch bul Cost Annual savings from $ 6SDIDOD replacing old techolog Annal benefits to communty $ 1500, DDD Residual value of benefits aft Pict horizon $ SOOD DOD Pjet horizon 5 yrs Useful life of techology Infinite Inhest rate + 2.44% Capatalize Cost NPHI ? ! ! A Find Capartialize Cost ( P ) = 1! knowing that P = Al . ) FIND B Draw Cash flow diagram it Calculate Net presity worth ( NPHI = ?Homework for Chapter 10: Problem # 1 in the text (Chapter 10) NOTE: PLEASE USE THE ATTACHED EXCEL FILE TITLED "Homework for Chapter 10_Excel" TO SOLVE THE FOLLOWING PROBLEM. You are considering the following bonds to include in your portfolio: Bond 1 Bond 2 Bond 3 Price $900.00 $1,100.00 $1,000.00 Face Value $1,000.00 $1,000.00 $1,000.00 Coupon Rate 7.00% 10.00% 9.00% Frequency 2 4 Maturity (Years) 15 20 30 Required Return 9.00% 8.00% 9.00% a) Determine the highest price you would be willing to pay for each of these bonds using the PV function. Also find whether the bond is undervalued, overvalued, or fairly valued (25 points). b) Determine the yield to maturity on these bonds using the RATE function assuming that you purchase them at the given price. Also calculate the current yield of each bond (25 points). c) Determine the yield to call of each bond using the RATE function if the time to first call and the call premium are the following (25 points): Bond A Bond B Bond C Call Premium % 3.00% 4.00% 5.00% Years to first call 5 4 3 d) Assume the following settlement dates for each bond: Bond 1 Bond 2 Bond 3 Settlement Date 1/1/2018 6/1/2018 9/1/2018 Use the PRICE and YIELD functions to recalculate your answers on parts (a), (b), and (c) (25 points)
