Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-year 10-year 15-year 20-year 33.33% 44.45 5.00% 9.50 3.750% 7.219 20.00% 14.29% 10.00% 18.00 32.00 24.49 14.40 8.55 6.677 14.81 7.41 19.20 11.52 11.52 17.49 12.49 11.52 9.22 7.70 6.177 8.93 6.93 5.713 6. 5.76 8.92 7.37 6.23 5.285 6.55 6.55 8.93 5.90 5.90 4.888 4.522 4.46 6.56 5.91 4.462 10 6.55 5.90 4.461 3.28 5.91 5.90 11 4.462 12 4.461 4.462 13 5.91 5.90 4.461 4.462 14 15 5.91 16 2.95 4.461 17 4.462 4.461 18 19 4.462 20 4.461 21 2.231 Table: MACRS Schedule by IRS 12345
Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-year 10-year 15-year 20-year 33.33% 44.45 5.00% 9.50 3.750% 7.219 20.00% 14.29% 10.00% 18.00 32.00 24.49 14.40 8.55 6.677 14.81 7.41 19.20 11.52 11.52 17.49 12.49 11.52 9.22 7.70 6.177 8.93 6.93 5.713 6. 5.76 8.92 7.37 6.23 5.285 6.55 6.55 8.93 5.90 5.90 4.888 4.522 4.46 6.56 5.91 4.462 10 6.55 5.90 4.461 3.28 5.91 5.90 11 4.462 12 4.461 4.462 13 5.91 5.90 4.461 4.462 14 15 5.91 16 2.95 4.461 17 4.462 4.461 18 19 4.462 20 4.461 21 2.231 Table: MACRS Schedule by IRS 12345
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV?
*assume corporate bonds pay 2x annually and have a FV on $1000
*MACRS table attached
a) Calculate the YTM of a 20-year corporate bond with a market price of $1,020, interest rate of 4.5% with 15 years left to maturity. [YTM
b) What is the MACRS depreciation for a 5-year property asset purchased for $50,000 in the 2nd year?
Transcribed Image Text:Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property
Half-Year Convention
Depreciation rate for recovery period
Year
3-year
5-year
7-year
10-year
15-year
20-year
33.33%
44.45
5.00%
9.50
3.750%
7.219
20.00%
14.29%
10.00%
18.00
32.00
24.49
14.40
8.55
6.677
14.81
7.41
19.20
11.52
11.52
17.49
12.49
11.52
9.22
7.70
6.177
8.93
6.93
5.713
6.
5.76
8.92
7.37
6.23
5.285
6.55
6.55
8.93
5.90
5.90
4.888
4.522
4.46
6.56
5.91
4.462
10
6.55
5.90
4.461
3.28
5.91
5.90
11
4.462
12
4.461
4.462
13
5.91
5.90
4.461
4.462
14
15
5.91
16
2.95
4.461
17
4.462
4.461
18
19
4.462
20
4.461
21
2.231
Table: MACRS Schedule by IRS
12345
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