1. Compute the future value in year 7 of a $2,500 deposit in year 1 and another $2,000 deposit at the end of year 4 using a 8 percent interest rate.
2. Nungesser Corporation's outstanding bonds have a $1,000 par value, a 12% semiannual coupon, 14 years to maturity, and an 10.5% YTM. What is the bond's price? Round your answer to the nearest cent.
3. A firm purchases a machine for $60,000, depreciated straight-line to zero over its 5 year life. If the machine is sold at the end of the fourth year for $25,000, what are the after-tax proceeds from the sale, assuming a 40% tax rate?