1. A Treasury bill is quoted at a bank discount yield of 1.21 percent and has 15 days to maturity. What is the bond equivalent yield given that this is a leap year?
1.16 percent
1.18 percent
1.20 percent
1.22 percent
1.23 percent
2. What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 0 –$ 5,600 1 1,325 2 1,525 3 1,925 4 1,425 Payback period years.
3. How are the profits of a partnership taxed?
The same as those of corporations
To each partner individually as agreed upon or shared equally among the partners
Not at all, since partnerships are exempt
Both at the partnership level and at the level of individual partners.