1. A commercial property is purchased for $800,000 which includes $75,000 for the land and $725,000 for the building. For depreciation purposes, the cost basis is equal to:
a) $800,000
b) $75,000
c) $725,000
d) None of the values given
2. You want to purchase a corporate bond. Ford has one available that matures in 2025 and is currently quoted at 115.25. You see that the coupon rate is quoted as 8.5 and the bond pays coupons on June and December 30th. It is now July 7th. The price of this bond (would appear on the Bloomberg terminal as)is: _________________.
a. $1152.50
b. $1154.13
c. $1237.50
d. $1191.00