A 10-year bond was issued last year with a coupon rate of 5 percent and a face value of 1000 There are now 9 years remaining for the life of the bond but the market interest rate of the bond is now 4 percent. What is the bond value?

Your firm’s discount rate is 8 percent. You are considering the purchase of truck A or Truck B. Truck A costs $100, has a useful life of 3 years, no salvage value, and maintenance costs of $10 per year. Truck B costs $80, has a useful life of 2 years, no salvage value, and maintenance costs of $15 per year. Which truck should you select and why?

Truck A because the average cost of 43.3 is less than Truck B's total cost of 55

Truck B because the NPV of -107 is less than Truck A's NPV of -126

Truck A because the EUAC of -48.8 is less than the Truck B's EUAC of -59.9

Truck B because the total cost of 110 is less than Truck A's total cost of 130

Now answer the following questions details :
1- Perhaps you had issues with solving the problems? What helped you solve it in the end?
1-what made the problems difficult?
2-What suggestions do you have for the problems you had an issue with in solving the problems? Can you explain it to your classmates?
4-What questions do you have for your professor and classmates for the question you are discussing?

Answer rating: 100% (QA)

Solution Here is how I would respond to the questions 1 I initially had some issues understanding th... View the full answer