question 17

What is the market value of a bond that will pay a total of 15 annual coupons of $100 each over the remainder of its life? Assume the bond has a $1,000 face value and an 8%/year yield to maturity.

Select one:

a. $1,192.07

b. 1,171.19

c. $634.86

d. $1,196.36

e. $1,135.90

question 18

Given a tax rate of 15% for income up to $50,000, a tax rate of 25% for income between $50,001 and $75,000, and a tax rate of 34% for income between $75,001 and $100,000, and a tax rate of 39% for income above $100,001, if ABC Inc. reports taxable income of $190,000. How large is this firm's tax bill?

Select one:

a. $78,000

b. $48,750

c. $57,350

d. $56,350

e. $91,125