1. Compute the total dollar return earned from a bond's coupon interest and the reinvestment of coupons from issue date to end of period 3.
Term to Maturity: 2 years
Par Value: $1,000
Coupon Rate: 7.30%
Yield to Maturity remains at 7.30% for the entire length of the bond maturity (2 years)
The bond pays semi-annual coupon payments
$39.21
$113.55
$37.83
$109.50
2. What is the net purchase or sale of fixed assets for the period given the following information?
Beginning Net Fixed Assets = $14,300,000
Ending Net Fixed Assets = 12,850,000
Accumulated Depreciation = 5,650,000
Depreciation Expense = 1,150,000
$1,450,000 net sale
$6,800,000 net purchase
$300,000 net sale
$7,500,000 net purchase