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QUESTION
1.The year is 2015.You bought a typewriter that costs $7,000.Using MACRS (5 years) what is the amount of depreciation you can take in 2015, 20017,
1. The year is 2015. You bought a typewriter that costs $7,000. Using MACRS (5 years) what is the amount of depreciation you can take in 2015, 20017, 2020, 2022?
2. 16 years ago you bought a corporate bond for $1,000. It was a 20 year bond with a coupon of 6%. Today, a similar bond has an 8% coupon. What is the value of the bond?
3. See problem two above - I am changing one thing: 4 years ago you bought the bond - what is the value now?
