Question: Part 2. Answer these questions. Show your work. 2. (3 pts) ABC company has net income of $42,500, depreciation expense of $1,800, interest expense of

 Part 2. Answer these questions. Show your work. 2. (3 pts)

Part 2. Answer these questions. Show your work. 2. (3 pts) ABC company has net income of $42,500, depreciation expense of $1,800, interest expense of $900, taxes of $1,600, addition to non-cash net working capital of $2,300, and capital expenditures of $11,700. What is the amount of Cash Flow from Assets? 3. (7 pts) You purchase a 25-year bond with face value of $1,000 and the coupon rate is 5% paid semiannually. The required rate of return on this bond is is 6%. a. (5 pts) What is the price you are willing to pay for this bond? b. (2 pts) Compared to a 25-year zero coupon bond with face value of $1,000, which one has a higher interest rate risk? Why

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