Question 24 (1 point) If a 20-year bond with a face value of $1,000 sells for $1,000. Which of the following statements is most CORRECT? 1) The bond's yield to maturity is less than its coupon interest rate. 2) The bond's yield to maturity is greater than its coupon interest rate. 3) The bond's yield to maturity is the same as its coupon interest rate. 4) The bond's current yield is the same as its capital gains yield. Question 25 (1 point) A textbook sells for $105 in the U.S. market. Exchange rates are such that 1 British pound () equals $1.87 U.S. dollars. Assume that purchasing power parity holds what should the textbook sell for in Britain? 1) 56.15 2) 85.46 3) 196.35 Dung luguyentran: Attempt 1 Suppose 1 British pound () equals 1.8690 U. S. dollars and 1 U. S. dollar equals 0.7692 euro. What is the cross exchange rate between the pound and the euro? 1) 1 = 2.4298 euros O2) 1 = 1.4377 euros 3) 1 - 1.2423 euros O4) 1 - 1.0998 euros Question 27 (1 point) Continued from the previous question) The machine will have no effect on revenue but will save the firm's $35,000 per year in before tax operating costs. The machine is expected to be sold after 4 years for $25,000. Assume the firm's marginal tax rate is 40% and annual depreciation rate of 25% in each of the next four years. What is the annual operating cash flow? 1) $10.240 O2) $20,687 3) $25,453 4) $30,000