1. A spot rate curve is most accurately described as yields to maturity for: A) government bonds. B) money market securities. C) zero-coupon bonds.
2. A project requires $126,514 of equipment that is classified as 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances,starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
3. If the yield to maturity on an annual-pay bond is 5.6%, what is the bond-equivalent yield? A) 5.12% B) 5.52% C) 5.15%