The financial instruments called Treasury bonds are:

A dealer will sell a bond at the:

Assume you are interested in purchasing a 10-year bond that is being issued today. It has a par value of $1,000 and an annual coupon rate of 5%. Coupons are paid semi-annually. The annual rate of return for other bonds of similar risk is 1.75%. What is the maximum price you would be willing to pay for the bond? (Round your answer to the nearest penny. Do not enter the dollar symbol or any commas. For example, if your answer is $1,234.56789, enter 1234.57. Do not worry if Canvas adds commas or truncates trailing zeros.)

The ________ is the difference between the price that a dealer is willing to pay and the price at which she is willing to sell.

A capital project will require a firm to spend $317,000 purchase and install new equipment, which will be depreciated on a straight line basis over its 3-year life to a value of $0. The company will also experience and immediate increase in net working capital of $72,000. The project is expected to generate annual sales of $203,000, and incur costs of goods sold and other operating expenses of $140,000 per year. The company’s marginal tax rate is 21%. What is the annual operating cash flow for this project? (Round your answer to the nearest whole dollar. Do not enter the dollar symbol or any commas. For example, if your answer is $1,234.56789, enter 1235. Do not worry if Canvas adds commas or truncates trailing zeros.)

The outstanding bonds of Pingale Inc. provide a real rate of return of 2.4 percent. If the current rate of inflation is 1.32 percent, what is the actual nominal rate of return on these bonds?

Assume you own a bond with a coupon rate of 5%. When the market rate is 5.5%, you sell the bond to a dealer. You will receive the:

A project under analysis will involve selling products for $13.19 per unit. The products require incurring variable costs of $5.61 per unit. Annual fixed costs are expected to be $3,400, and annual depreciation expense is expected to be $978. How many units must be sold for the project to avoid experiencing negative Operating Cash Flow? (Round your answer to the nearest whole unit. For example, if your answer is 1,234.56789, enter 1235. Do not worry if Canvas adds commas.)

The stockholders of a firm received an annual dividend of $6.50 per share yesterday. Analysts expect the firm to increase its dividend by 8% each year for three years in a row. Thereafter, it is expected that the dividend will grow at an annual rate of 6.5%, forever. If stockholders require a rate of return of 12.5%, what is one share of the stock worth today? (Round your answer to the nearest penny. Do not enter the dollar symbol or any commas. For example, if your answer is $1,234.56789, enter 1234.57. Do not worry if Canvas adds commas or truncates trailing zeros.)

When developing a best-case analysis of a proposed project, an analyst will utilize the: