question 1

question 2

A company is considering an investment that will return $21,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice Not more than $66,568 O Not more than $133,136 O Not more than $84,000 O Not more than $135,727 On January 1 of Year 1, Congo Express Airways issued $3,600,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,306,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $10.500 every 6 months. The life of these bonds is: Multiple Choice 31 years 28 years. 14 years 34 years