Consider a bond with annual coupon payments. You purchased the bond when it was originally
issued. Immediately thereafter, the YTM had changed and remained at this new level
indefinitely. Today, at the end of year 4 (immediately after the 4th coupon payment), your bond
investment has the following characteristics:

Total Interest (Coupons) =
Interest-on-Interest (I2) =
Capital Gains =
Realized Return (annual) = $5,476.75
$1,047.89
$759.06
13.773973%
Hint: Do not assume any face value or any time to maturity at issue

You must show ALL work – including any calculator keystrokes to receive credit. Please, find
the following:
a. The annual coupon (in dollars and cents)
b. The new YTM (as a percentage with 3 digits after the decimal point)
c. The purchase price of the bond (in dollars and cents)
d. The face value of the bond (in dollars and cents)
e. The coupon rate (as a percentage with 3 digits after the decimal point)
f. The market value of the bond at the end of year 4 (in dollars and cents)
g. The time to maturity at issue (round to the nearest year)
h. The realized return at the end of year 10 (as a percentage with 3 digits after the decimal
point)
i. The realized yield at the end of year 10 (as a percentage with 3 digits after the decimal
point)

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?