Question: Step by step solution for the following: please and thank you. 2. A Treasury bond has a face value of $1,000 and a coupon rate

Step by step solution for the following:
please and thank you.
Step by step solution for the following:please and thank you. 2. A

2. A Treasury bond has a face value of $1,000 and a coupon rate of 6% payable semiannually matures 5 years from now. The bond was purchased when the market rate was 8% for this 5 bond. What amount was paid for the bond. 10pts 3. A firm purchased some equipment for $40,000. The equipment reduced costs by $6,000 each year for 8 years, the equipment was sold for $30,000 at the end of the 8 years. Using an interest rate of 10% and annual cash flow analysis (EUAW) determine if the investment was acceptable. 10pts

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