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Jenny LePlaz is looking to invest in a five-year bond that pays annual coupons of 6.25 percent and currently sells at $912.34. What is the current market yield on such bonds? (Round to the closest answer.)

Jacob’s friend, Albert, borrows today with a promise to repay $[loan] in [n] years. If Jacob could earn [rate] percent annually on the any investment he makes today, how much would he be willing to lend Albert today? Hint: How much can Jacob lend Albert today (PV?) so that he can achieve his expected [rate]% return (I/Y) when Albert pays back the $[loan] (FV) [n] years from now (N)? Round to nearest two decimals if needed. Do not type the $ symbol.

Assume that you have analyzed the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following possible changes in the scenario would lower the calculated value of the investment?

What is the PV of an ordinary annuity with [n] annual payments of $[pmt] if the appropriate interest rate is [r]%?   **Round your answer to the nearest three decimals if needed. Do not type the $ symbol.

An example of agency cost is:

Which of the following is NOT true about treasury stock?

West Railroad Corporation announced that in the year ended Dec 31, 2015, its earnings before taxes amounted to $400,000. Calculate its taxes using the following table. Round your final answer to the nearest dollar. Tax Rate at Bracket Taxable Income 15% $0 to $50,000 25% 50,001 – 75,000 34% 75,001 – 100,000 39% 100,001 – 335,000 34% 335,001 – 10,000,000 35% 10,000,001 – 15,000,000

If Bank A pays interest on a monthly basis and Bank B pays the same interest on a quarterly basis, then investing $1,000 in Bank B will lead to a higher future value than investing the same amount in Bank A.

On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm’s accountants should recognize the sale on:

You plan to borrow $[loan] at a [r]% annual interest rate. The terms require you to amortize the loan with [t] equal end-of-year payments. How much interest will you pay in Year 2 (in dollar amount)?   **Round your answer to the nearest three decimals if needed. Do not type the $ symbol.