Start with the partial model in the file Ch$04$ P$24$ Build a Model.xlsx$.$ A $25-$year, $8\%$ semiannual coupon bond with a par value of $$1,000$ may be called in $7$ years at a call price of

$$1,070.$ The bond sells for $$1,180.($Assume that the bond has just been issued.$)$

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate

calculations.

Download spreadsheet Ch$04$ P$24$ Build a Model$-$dde$650.$xisx

a$.$ What is the bond's yield to maturity? Round your answer to two decimal places.

b$.$ What is the bond's current yield? Round your answer to two decifnal places.

$\%$

c$.$ What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minus sign to enter a negative value, if any.

$\%$

d$.$ What is the bond's yield to call? Round your answer to two decimal places.

$\%$

Franklin Furniture Incorporated $($FFI$)$ manufactures bedroom furniture in sets $($a set includes a dresser, two queen$-$size

beds, and one bedside table$)$ for use in motels and hotels. FFI has three customer groups, which it calls the value, quality,

and luxury groups. The value products are targeted to low$-$price motels that are looking for simple furniture, while the

luxury furniture is targeted to the very best hotels. The value line is attractive to a variety of hotels and motels that

appreciate the combination of quality and value. Currently there has been a small increase in the quality and value lines,

and an appreciable increase in demand in the luxury line, reflecting cyclical changes in the marketplace. Luxury hotels are

now in more demand for business travel, while a few years ago, the value segment was the most popular for business

travelers. FFI wants to be able to respond to the increased demand with increased production but worries about the

increased production cost and about price setting as its mix of customers and production changes. FFI has used a volume$-$

based overhead allocation rate based on direct labor hours for some time. Direct labor cost is $$19$ per hour.

The budgeted production data for the three product lines follow.

Required:

Determine the cost per set and the total production cost of each of the three customer groups using activity$-$based costing.

Determine the production cost for each of the three customer groups using FFI's current volume$-$based approach.

Note: For all requirements, round your intermediate calculations and final answers $2$ decimal places.