1. Which of these Liens has the 3rd highest priority?
First Mortgage Lien for $257,300 filed in 2002
Second Mortgage Lien for $74,000 filed in 2005
Property Tax Lien for $12,500 filed in 2005
Mechanic’s Lien for $16,050 filed in 2000
General Lien filed for $22,000 in 2001
2. Which of the following statements is correct?
a. A bond with a coupon rate equal to its current yield to maturity pays no coupons.
b. A bond with a coupon rate above its current yield to maturity sells at a discount.
c. A bond with a coupon rate above its current yield to maturity sells below its par value.
d. A bond with a coupon rate above its current yield to maturity sells at a premium.
e. A bond with a coupon rate below its current yield to maturity sells above its par value.
3. Deep Hollow Welding is considering a project that provides an annual cash inflow of $150,000 for the first six years, $200,000 per year for Year 7 through Year 9, and $100,000 for Year 10. The project requires an initial investment of $1 million. If the firm’s required return for this project is 10 percent, what is the net present value?
$27,404
$110,320
$56,887
$126,813
$96,774