A30-year maturity bond has an 8.5% coupon rate, paid annually. it sells today for $871.17. a 20-year maturity bond has an 8.0% coupon rate, also paid annually. it sells today for $894.50. a bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 9.5% and 15-year maturity bonds will sell at yields of 9.0%. because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 7%a. calculate the annual return for the 30-year maturity bond over the next five years. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return % b. what is the expected return of the 20-year bond. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.