1. S receives incentive stock options (ISOs) as part of a compensation plan (no value when received). The unrestricted option is for 100 shares at $100 per share. S exercises the option five years later when the FMV of the stock is $190 per share. S holds the stock for five more years and then sells it for $225 per share. Regarding the sale by S of the ISO stock, S will have a regular tax gain and AMT gain, respectively, of
a. $2,500 and $12,500. b. $22,500 and $3,500. c. $13,590 and $12,500. d. $12,500 and $13,590. e. $12,500 and $3,500.
2. What is the value of a bond that matures in 20 years, makes an annual coupon payment of $100, and has a par value of $1000? Assume a required rate of return of 8%, and round your answer to the nearest $10. $1,275 $1,200 $1,000 $1,150