On january 1, 2018, ithaca corp. purchases cortland inc. bonds that have a face value of s150,ooo. the cortland bonds have a stated interest rate of 6%. interest is paid semiannually on june 30 and december 31, and the bonds mature in 10 years. for bonds of similar risk and maturity, the market yield on particular dates is as follows: january 1.2018 7.0%june 30.2018 8.0%december 31.2018 9.0%required: 1. calculate the price ithaca would have paid for the cortland bonds on january 1, 2018 (ignoring brokerage fees), and prepare a journal entry to record the purchase. 2. prepare all appropriate journal entries related to the bond investment during 2018, assuming ithaca accounts for the bonds as a held-to-maturity investment. ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. 3. prepare all appropriate journal entries related to the bond investment during 2018, assuming that ithaca chose the fair value option when the bonds were purchased, and that ithaca determines fair value of the bonds semiannually. ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds.

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u.s. government's e find the expected value of perfect information about the u.s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.