The yield to maturity on 1-year zero-coupon bonds is currently 6.5%; the ytm on 2-year zeros is 7.5%. the treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 8.5%. the face value of the bond is $100.
a. at what price will the bond sell? (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)
$
b. what will the yield to maturity on the bond be? (do not round intermediate calculations. round your answer to 3 decimal places. omit the "%" sign in your response.)
yield to maturity__%
c. if the expectations theory of the yield curve is correct, what is the market expectation of the price that the bond will sell for next year? (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)
price__$
d. recalculate your answer to (c) if you believe in the liquidity preference theory and you believe that the liquidity premium is 1%. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)
$.

When is going to be why would you put money into saving account

When the national economy goes from bad to better, market research shows changes in the sales at various types of restaurants. projected 2011 sales at quick-service restaurants are $164.8 billion, which was 3% better than in 2010. projected 2011 sales at full-service restaurants are $184.2 billion, which was 1.2% better than in 2010. how will the dollar growth in quick-service restaurants sales compared to the dollar growth for full-service places?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?