Question: please show all work with 4 decimal points on calculator and steps using a BA II plus finance calculator 9. The Central Intelligence Agency (CIA)
9. The Central Intelligence Agency (CIA) needs to invest in the next generation miniature tracking device. The biodegradable microchip was developed by a new machine costing $6,000,000. The machine will be depreciated straight-line to zero over its six-year useful life. Due to technology becoming obsolete very quickly in the spy game, the machine will be sold in 5 years to a competitor for $750,000. The CIA uses a tax rate of 34% Calculate the after-tax final year adjustment from the sale of the tracking device (4 Points) 10. IBM bond is a 6% coupon bond. Ford bond is a 10% coupon bond. Both bonds have 10 years to maturity, make semiannual payments, and have a yield to maturity of 12%. If current interest rates rise by 2% what is the percentage change price in these bonds? Which bond would you choose to minimize your losses? (5 Points)
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