Reference no: EM131932817
1. What is the par value of a corporate bond that was issued with a 9 percent annual coupon, pays $45 in semiannual interest, and is due in 15 years?
A. $1,080.00
B. $1,167.33
C. $1,070.23
D. $1,000.00
2. You purchase a machine for $12,000, depreciated straight-line to a salvage value of $2,000 over its 5 year life. If the machine is sold at the end of the third year for $7,500, what are the after tax proceeds from the sale, assuming your tax rate is 34%?
a) $6,990
b) $7,160
c) $7,210
d) $7,390
e) $7,500
3. If the U.S. sells $150 million of wheat to Brazil in return for $200 million of Brazilian oil, the $50 million difference will necessarily
A. be balanced by other transactions in the U.S. Balance of Payments account.
B. never by paid back, resulting in a $50 million loss for Brazil.
C. result in the sale of $50 million more wheat to Brazil later on.
D. obligate the U.S. to provide $50 million in foreign aid to Brazil.