3.Bond Valuation an investor has two bonds in his portfolio that both have a face value of $1.000 and pay a 10 percent annual coupon. Bond L matures in 15 years. While bond S matures in 1 year. What will the value of each bond be if the going of interest rate is 5 percent, 8 percent, and 12 percent? Assume that there is only one interest payment to be made on Bond S, at its maturity, and 15 more payments on Bond L.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.