A firm incurs $40,000 in interest expenses each year. If the tax rate of the firm is 30%, what is the effective after-tax interest rate expense for the firm?

What is the yield to maturity of a bond that pays an 5% coupon rate with annual coupon payments,

has a par value of $1,000, matures in 15 years, and is currently selling for $769? A) 5.7% B) 7.6% C) 9.5% D) 2.4%

Which of the following factors is not considered when an insurance rate or premium is calculated?

A) The cost of the actual losses B) The cost of the insurance salesman and other company expenses C) Investment earnings on prepaid premiums D) The decision by the U.S. Supreme Court in 1943