Question
The Boeing Company issued a 40-year original maturity bond in 1991 with an annual coupon rate of 8.75%, par value of $1,000, and annual coupon
The Boeing Company issued a 40-year original maturity bond in 1991 with an annual coupon rate of 8.75%, par value of $1,000, and annual coupon payments. If prevailing nominal rates are 7.2%, what should be the price of the bond today (year 2020)?
Suppose an affiliate in Hamburg (Germany) buys 100 components (Quantity) from its affiliate in Dublin (Ireland) Affiliate in Dublin has production costs of 2000 Assume, the statutory tax rate in Germany is 35% and in Ireland is 15% The affiliate in Hamburg sells the products at a price of 30 to the external market Please calculate the pre-tax income, the tax expense, and the after-tax income for the German and the Irish affiliate. Please also calculate the group's average Effective Tax Rate, the difference in tax expense and after-tax income if (a) the transfer price is set to 20 and (b) to 30. Exercise 2: Affiliate A (in country A) produces goods and sells them cross-border to affiliate B in country B)
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