Q1) Two bonds with $1,000 par value were issued 2 years ago, with maturity 4 and 7 years. Their coupon rate was 9%. Today, interest rates are unstable. Calculate the current prices for both bonds in the following scenarios:

a. Similar risk bonds carry a 3 % interest rate

b. Similar risk bonds carry an 8 % interest rate

c. Similar risk bonds carry a 13 % interest rate

Explain your answer.

Note: this is not a multiple choice question

I need assistance determining the steps required to answer the Chapter 4 Data Case questions 2, 3, and 4 in the Fundamentals of Corporate Finance 4th edition by Berk, DeMarzo and Harford. I have provided the answer to question 1. An analysis isn't required. Only the steps to obtain the answers. Can anyone help?

Data Case: Assume that today is August 5, 2015, Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle, Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire at age 65 and has just begun to think about the future.

Natasha has $75,000 that she recently inherited from her aunt. She invested this money in 10-year Treasury bonds. She is considering whether she should further her education and would use her inheritance to pay for it. She has investigated a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to two programs and could start either one soon.

One alternative that Natasha is considering is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative in her company. The base salary for a Tier 3 representative is $10,000 more than the salary of a Tier 2 representative, and she anticipates that this salary differential will grow at a rate of 3% a year for as long as she remains employed. The certification program requires the completion of 20 Web-based courses and a score of 80% or better on the final exam. She has learned that the average amount of time necessary to finish the program is one year. The total cost of the program is $5,000, due when she enrolls in the program. Because she will do all the work for the certification on her own time, Natasha does not expect to lose any income during the certification process.

Another option is going back to school for an MBA degree. With an MBA degree, Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that this salary differential will also grow at a rate of 3% per year for as long as she keeps working. The evening program, which will take three years to complete, costs $25,000 per year, due at the beginning of each of her three years in school. Because she will attend classes in the evening. Natasha doesn't expect to lose any income while she is earning her MBA if she chooses to undertake it.

1. Determine the interest rate Natasha is currently earning on her inheritance by going to Yahoo! Finance (http://finance.yahoo.com) and clicking the 10 Yr. Bond link in the Market Summary section or enter ^TNX in the symbol lookup field. Then go to the Historical Prices link and enter the appropriate date, August 5, 2015, to obtain the closing yield or interest rate she is earning. Use this interest rate as the discount rate for the remainder of this problem. Interest rate is 2.268%

2. Create a timeline in Excel for Natasha's current situation, as well as the certification program and MBA degree options, using the following assumptions:

a. Salaries for the year are paid only once, at the end of the year.

b. The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification.

3. Calculate the present value of the salary differential for completing the certification program. Subtract the cost of the program to get the value of undertaking the certification program.

4. Calculate the present value of the salary differential for completing the MBA degree. Calculate the present value of the cost of the MBA program. Based on your calculations, determine the value of undertaking the MBA.

5. Based on your answers to Questions 3 and 4, what advice would you give to Natasha? What if the two programs are mutually exclusive? If Natasha undertakes one of the programs, there is no further benefit to undertaking the other program. Would your advice change?

find the mean,variance and standard deviation for the following probability distribution

0 2 4 7 9

15 22 40 34 8

4. An invoice for $3500 dated July 17th, terms 2/10, E.O.M, is paid on August 10. What is the amount paid?

5. Mike received a payment of $807.50 from Andrew on October 7 on an invoice of $ 2731.75 dated September 27, terms 5/10. (draw a little chart)

(i) How much does Mike credit Andrew’s account for the payment?

(ii) How much does Mike still owe on the invoice

6. Turf has received an invoice of $ 1005.00 dated June 10, terms 3/10, n/30 R.O.G, for shipment of dresses that arrived on July 17. What is the last day to take a cash discount and how much is to be paid if the discount is taken?

7. A deposit of $2000 earns interest at 4.5% p.a. compounded quarterly. After two-and-a-half years, the interest rate is changed to 2.75% compounded monthly. How much is the account worth after 6 years?

A jar contains 2 green marbles, G1 and G2, and 4 yellow marbles, Y1, Y2, Y3, and Y4. Imagine that we do not know this. Suppose that our parameter p of interest is the proportion of marbles in the jar that are green. We will be allowed to take three marbles out the jar (all at once, without replacement). We will estimate p by looking at ˆp, the proportion of marbles in our sample that are green.

(a) Write down the sampling distribution of ˆp, showing enough work that I can follow. (Assuming that pˆ is approximately normal is not valid in this case [why?] so don’t do it.)

(b) Is ˆp an unbiased estimator for p? Answer clearly and then explain, showing all necessary work.

a. What are the 4 economic systems discussed in Chapter 2’s PowerPoint? (0.4 point)

b. Which economic system will you prefer to have? Explain why. (0.4 point)

5. a. How does McEachern define public goods and services? (0.2 point)

b. Provide examples of two examples of public goods or services from which you personally benefit. Could these goods and services be provided by private markets? Why or why not? (0.6 point)

6. a. Assume that there is a positive relationship between age and height. What does it mean? (0.4 point)

b. If you build a two-dimensional graph between these two variables (age and height), what type of slope will you get? Explain. (0.2 point)

Complete the following exercises, in 2-4 sentences each and include a paragraph explaining how you can apply what you've learned in this chapter to your job.

1. Write a short note on the Consolidated Omnibus Budget Reconciliation Act of 1986.
2. What is workers' compensation? Mention some common features that all states' workers' compensation laws share.
3. Describe some measures that firms have taken to gain tighter management control over the cost of health care.
4. Discuss some of the trends that are helping to shape the future in health-care coverage.
5. Write a short note on the Pension Benefit Guaranty Corporation.
6. Briefly explain the provisions of the Pension Protection Act (PPA) of 2006.
7. Discuss the four approaches that are widely used to express the costs of employee benefits and services.
8. What is the broad objective of the design of compensation programs?
9. Who typically manages contributions to pension funds?
10. Explain the purpose of the unemployment insurance system.
11. Why do many companies offer domestic-partner benefits, regardless of an employee's sexual orientation and marital status?
12. What are some of the requirements for a worker to receive unemployment benefits?
13. Briefly discuss some of the reasons why employee benefits have grown in the recent years.

the Jones family household includes Mr. and Mrs. Jones, 4 children, 2 cats, and 3 dogs. Every dat at 6 P.M. there is a Jones family stroll. The rules for a Jones family stroll are: Exactly 5 things (people + dogs + cats) go on each stroll. Each stroll must include at least one parent and at least one pet. There can never be a dog and a cat on the same stroll unless both parents go.

(a) How many different groupings are possible if exactly one parent and Rover, the oldest family dog, go on the stroll?

(b) How many different groupings are possible if exactly one parent goes on the stroll?

Chapter 2, #4

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.   

Information necessary to prepare the year-end adjusting entries appears below.

1. Depreciation on the office equipment for the year is $10,300.
2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.
3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
5. On April 1, 2021, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.
6. $560 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.

5. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

1. revenue accounts

2. expense accounts

3. dividend accounts