this is the first question.

This are the three pages for the second question. I think I found the question on chegg solutions for chapter 7 on a Firm's Long term debt payment s ability but there was no solution on the question.

of bonds rises. 13. Will there be an effect on interest rates if brokerage16 17 commissions on stocks fall? Explain your answer. QUANTITATIVE PROBLEM S 1. Sally owns a $1,000-par zero-coupon bond that has six years of remaining maturity. She plans on selling the bond in one year and believes that the required yield next year will have the following probability distribution Required Yield (%) 6.70 6.85 7.10 7.30 7.55 7.75 Probability 0.1 0.2 0.3 0.2 0.1 a. What is the expected price of the bond at the time of sale? b. What is the standard deviation of the bond price? Calculate the yield to maturitrt for CASE 7-2 GLOBAL PROVIDER THE SHAW GROUP, INC.* This case includes data from The Shaw Group, Inc. annual report 31, 2010, for the year ended August Note 6 -Property and Equipment: Property and equipment consisted of the following (in thousands) August 31, 2010 2009 Transportation equipment S 10,899 S 20,977 urniture, fixtures, and software Machinery and equipment Buildings and improvements Assets acquired under capital leases Land Construction in progress 162,446 263,759 233,353 146,905 219,753 151,708 3,612 5,561 14,269 89,401 777,739 12.404 79,004 636,402 (250,796) S 385,606 Less: accumulated depreciation Property and equipment, net 293,098) S 484,641 Assets acquired under capital leases, net of accumulated depreciation, were $1.6 million and $2.0 million at August 31, 2010, and 2009, respectively. If the assets acquired under capital leases transfer title at the end of the lease term or contain a bargain purchase option, the assts are amor- tized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. Depreciation expense of $59.8 million, $52.3 million, and $43.7 million for the fiscal years ended August 31, 2010, 2009, and 2008, respectively, is included in cost of revenues and general and administrative expenses in the accompanying consolidated statements of operations. At August 31, 2010, construction in progress consisted primarily of deposits on heavy equipment to be used on some of our power projects. At August 31, 2009, construction in progress consisted primarily of cost related to the construction of our module fabrication and assembly facility in Lake Charles, Louisiana. In fiscal year 2009, we recorded an asset impairment charge of $5.5 million for a con solidated joint venture. The impairment charge reduced the property, plant, and equipment to its salvage value lcontinued) mlen a A 32010 right m use the awet. For leases with mewal options where the renerwal s require us to make the following etimated future paymenn as of 2013 entered into a 10-year non-cancelable operating lease for our Corporate Baton Rouge, Louisiana. In connection with this lease, apptoximately $150 nullion. The option expires the earher of Ja assets. The book value of the option is assessed for impairment annua we pur nd unde $12.2 million for the right to acquire additional ofice space a ehewal of the existing Corporate Headquarters lease. The cost o appraisals of the additional office space and undeveloped land subject the opt based on option. If we renew the lease rather thanrters hunidin ultfill the ru ercise the option, the option value will be n exe term of the new Corporate Headquarters building lease enter into lease agreements for equipment needed to total rental expense for the fiscal years ended August rent payable (current and l fulfill the requirements of of August 31, 2010, are not included as part was approximately $178.8 million, August 31, 2010 and 2009, respectively y payments owed or committed under these lease arrangements as total minimum lease payments shown above ease arrangements 31, 2010, 2009, and 2008 S178.1 million, and $170.6 million, respectively ong-term) aggregated $32.0 million and $30.3 million at i7 for the m a. For August 31, 2010 1. What was the gross amount for property and 2. What was the net amount for property and equipment 3. What was the gross amount for assets 4. What was the 5. How material equipment? acquired under capital leases? net amount for assets acquired under capital leases? are assets acquired under capital leases in relation to total property and equipment? How material are credit at August 31, 20102 Operating leases: 1. What 2. Using two-thirds of future minimum lease payments representing principal, what b. capital lease obligations in relation to total debt and revolving lines of C. t was the total future minimum lease payments as of August 31, 2010? incipal at August 31, 2010? would be the estimate for pr 3. How material are operating leases in relation to capital leases? CaSE 7-3 COMMITTED TO SAVING PEOPLE MONEY of bonds rises. 13. Will there be an effect on interest rates if brokerage16 17 commissions on stocks fall? Explain your answer. QUANTITATIVE PROBLEM S 1. Sally owns a $1,000-par zero-coupon bond that has six years of remaining maturity. She plans on selling the bond in one year and believes that the required yield next year will have the following probability distribution Required Yield (%) 6.70 6.85 7.10 7.30 7.55 7.75 Probability 0.1 0.2 0.3 0.2 0.1 a. What is the expected price of the bond at the time of sale? b. What is the standard deviation of the bond price? Calculate the yield to maturitrt for CASE 7-2 GLOBAL PROVIDER THE SHAW GROUP, INC.* This case includes data from The Shaw Group, Inc. annual report 31, 2010, for the year ended August Note 6 -Property and Equipment: Property and equipment consisted of the following (in thousands) August 31, 2010 2009 Transportation equipment S 10,899 S 20,977 urniture, fixtures, and software Machinery and equipment Buildings and improvements Assets acquired under capital leases Land Construction in progress 162,446 263,759 233,353 146,905 219,753 151,708 3,612 5,561 14,269 89,401 777,739 12.404 79,004 636,402 (250,796) S 385,606 Less: accumulated depreciation Property and equipment, net 293,098) S 484,641 Assets acquired under capital leases, net of accumulated depreciation, were $1.6 million and $2.0 million at August 31, 2010, and 2009, respectively. If the assets acquired under capital leases transfer title at the end of the lease term or contain a bargain purchase option, the assts are amor- tized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. Depreciation expense of $59.8 million, $52.3 million, and $43.7 million for the fiscal years ended August 31, 2010, 2009, and 2008, respectively, is included in cost of revenues and general and administrative expenses in the accompanying consolidated statements of operations. At August 31, 2010, construction in progress consisted primarily of deposits on heavy equipment to be used on some of our power projects. At August 31, 2009, construction in progress consisted primarily of cost related to the construction of our module fabrication and assembly facility in Lake Charles, Louisiana. In fiscal year 2009, we recorded an asset impairment charge of $5.5 million for a con solidated joint venture. The impairment charge reduced the property, plant, and equipment to its salvage value lcontinued) mlen a A 32010 right m use the awet. For leases with mewal options where the renerwal s require us to make the following etimated future paymenn as of 2013 entered into a 10-year non-cancelable operating lease for our Corporate Baton Rouge, Louisiana. In connection with this lease, apptoximately $150 nullion. The option expires the earher of Ja assets. The book value of the option is assessed for impairment annua we pur nd unde $12.2 million for the right to acquire additional ofice space a ehewal of the existing Corporate Headquarters lease. The cost o appraisals of the additional office space and undeveloped land subject the opt based on option. If we renew the lease rather thanrters hunidin ultfill the ru ercise the option, the option value will be n exe term of the new Corporate Headquarters building lease enter into lease agreements for equipment needed to total rental expense for the fiscal years ended August rent payable (current and l fulfill the requirements of of August 31, 2010, are not included as part was approximately $178.8 million, August 31, 2010 and 2009, respectively y payments owed or committed under these lease arrangements as total minimum lease payments shown above ease arrangements 31, 2010, 2009, and 2008 S178.1 million, and $170.6 million, respectively ong-term) aggregated $32.0 million and $30.3 million at i7 for the m a. For August 31, 2010 1. What was the gross amount for property and 2. What was the net amount for property and equipment 3. What was the gross amount for assets 4. What was the 5. How material equipment? acquired under capital leases? net amount for assets acquired under capital leases? are assets acquired under capital leases in relation to total property and equipment? How material are credit at August 31, 20102 Operating leases: 1. What 2. Using two-thirds of future minimum lease payments representing principal, what b. capital lease obligations in relation to total debt and revolving lines of C. t was the total future minimum lease payments as of August 31, 2010? incipal at August 31, 2010? would be the estimate for pr 3. How material are operating leases in relation to capital leases? CaSE 7-3 COMMITTED TO SAVING PEOPLE MONEY