The bacon company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. the old machinery originally cost $9,000 and had accumulated depreciation of $5,000. in recording this transaction, bacon company should record:
a. a loss of $1,500
b. the new machinery at $12,700
c. the new machinery at $16,700
d. a gain of $1,500

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: