Bonds are ________. A) a series of perpetual short-term debt ...

[jake]

Bonds are ________.
 
  A) a series of perpetual short-term debt instruments
  B) a form of equity financing that pays interest
  C) long-term debt instruments used to raise large sums of money
  D) a hybrid form of financing used to raise large sums of money from a diverse group of lenders

Question 2

A corporation has decided to replace an existing asset with a newer model. Two years ago, the existing asset originally cost 70,000 and was being depreciated under MACRS using a five-year recovery period. The existing asset can be sold for 30,000.
 
  The new asset will cost 80,000 and will also be depreciated under MACRS using a five-year recovery period. If the assumed tax rate is 40 percent on ordinary income and capital gains, the initial investment is ________.
  A) 48,560
  B) 44,360
  C) 49,240
  D) 27,600

[carojassy25]

Answer to Question 1

C

Answer to Question 2

A

[jake]

Thanks for the timely response, appreciate it

[bdobbins]

Excellent