QUESTION 16 A 30-year Government of Canada bond has 6% coupon rate paid semiannually. The quoted yield to muturity is 8%. Please find the value of a 10-year forward contracts contingent on the Canadian bond. QUESTION 17 Jim work for a chemical research laboratory that is contemplating leasing a water treatement equipment (leasing is a common practice with expensive, high-tech equipment). The equipment costs $600,000 and it would be depreciated straight-line to zero over six years. Because of water contamination, it will actually be completely valueless in six years. You can lease it for $8000 per year for five years. Assume that the tax rate is 35 percent. You can borrow at 8 percent before taxes. Should you lease or buy