Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds.
Bond A Bond B
Coupon rate 5.00% 5.00%
Time to maturity 5 years 25 years
Required return 7.37% 7.37%
a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places.)
b. Recalculate the bonds’ values if the required rate of return changes to 9.40%. (Round your answers to 2 decimal places.)
c. Calculate the increase or decrease in bond value based on the change in required return. (Round your answers to 2 decimal places.)

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year.if the tax rate is 35 percent, what is the annual ocf for the project?