Suppose a 10​-year, $ 1,000 bond with a 10 % coupon rate and semiannual coupons is trading for a price of $906.44

.a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

b. If the​ bond's yield to maturity changes to8 %​APR, what will the​ bond's price​ be?

5. Assume that a country produces an output Q of 50 every year and that r* = 10%. Consumption C is 50 every year, and I = G = 0. Suppose there is a temporary drop in output in year 0, so Q falls to 28. Q returns to 50 in every future year. If the country desires to smooth C, how much should it borrow in period 0? What will the new level of C from then on? (Hint: calculate the new present value of output and then estimate the new constant level of consumption.)

A. The nation borrows 20 in period 0 and the new level of C is 48.

B. The nation borrows 22 in period 0 and the new level of C is 28.

C. The nation borrows 28 in period 0 and the new level of C is 36.

D. The nation borrows 48 in period 0 and the new level of C is 22.

6. If a nation experiences an output shock and wishes to borrow to smooth consumption, how much of consumer spending must it forgo each year to achieve consumption smoothing and maintain the long-run budget constraint?

A. an amount equal to r*/(1 + r*) of the output shock

B. an amount equal to r* as a percent of the former level of GDP

C. an amount equal to 20% of its output shock

D. 95% of the output shock

7. Which expression below represents the change in wealth in period 0? Use the following notation: Δ denotes change, W_t is external wealth at time t, TB_t is the trade balance during time period t, and r* is the constant real interest rate. Assume that net labor income from abroad is zero, there are no capital gains on external wealth, and there are no unilateral transfers.

A. ΔTB₀ = W₀ + r*W_-1.

B. ΔW₀ = TB₀ + r*W_-1.

C. ΔW_-1 = ΔW₀ + TB₀.

D. ΔTB₀ = ΔW_-1 + r*W_-1.

3. What is the relationship between cash flows from operations and Income for the year of the statement?

4. Explain the difference between the direct method and the indirect method of disclosing cash flows from operations.

5. Do you believe that cash inflows and outflows associated with nonoperating items such as interest expense, interest revenue, and dividend revenue, should be separated from operating cash flows? Explain.

Use this information to answer the following questions

An outstanding 30 year corporate bond for a U.S. company has 14 years left to maturity and has a coupon rate of 4.0%. The bond is currently selling for $980.

1) What is the yield to maturity?

2) What is the current yield?

3) What is the capital gains yield?

Assume a corporation is expecting the following cash flows in the future: $-5 million in year 1, $8 million in year 2, $22 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 11%, the firm has debt totaling $41 million, and 10 million shares outstanding. What should be the price per share for this company? Enter your answer in dollars, rounded to the nearest cent.

1.) Littlefield Industries purchased a bond on September 1 of the current year for​ $200,000 and classified the investment as trading debt. The market value of the trading debt investment at​ year-end is​ $196,000. The adjustment is​ ______.

2.) On January​ 1, 2019, Commercial Equipment Sales issued $36,000 in bonds for $19,700. These are six−year bonds with a stated interest rate of 9​%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June​ 30, 2019?

3.) A $$33,000​, three- ​month, 1212​% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

1. Anderson plans to acquire an automated assembly line with ten year life at a cost of sh 10 million, delivered and installed. He plans to use the equipment for only five years.He can borrow the required 10 million at a before cost of 10%.The estimated scrap value is sh 50,000 after ten years, but its estimated scrap value after five years is sh 1 million. He can lease the equipment for 5 years at a rental charge of sh 2.75m payable at the beginning of each year. The lessor will maintain the equipment. However if he buys he will bear the cost of maintenance of shs500,000 per year payable at the beginning of the year.The marginal tax rate is 30%

          Analyze whether the company should purchase or lease the asset

PS: please have another expert try it. it had been done earlier ,same exact question but was locked out. .Thanks!

1. McKen restaurant is experiencing sales decline this year. The manager is worried about the sustainability of the restaurant. He asked you to form a team to investigate the causes of the sales decline. After identifying the management dilemma, you discuss the management question with your manager.

1. What type of management question should you set?
2. You found one internal report about customers’ complaint records in 2018 by the customer service department, however, your manager asked you to check “recentness”, “authority” and “compatibility” of the records. Comment on these three areas of the records.

A bank has issued a one- year certificate of deposit for $50 million at an interest rate of 2 percent. With the proceeds, the bank has purchased a two- year Treasury note that pays 4 percent interest. a) What is the Bank's asset? b) What is the Bank's liability? c) What risk does the bank face in entering into these transactions? d) What would happen if all interest rates were to rise by 1 percent? Will the bank earn or lose money?