The Alex Inc. has a bond outstanding with a face value of $1…
The Alex Inc. has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 2% and that the coupon payments are to be made semi-annually. Assuming the appropriate YTM on the Alex bond is 8.0%, then the price that this bond trades for will be closest to:
Read DetailsJoe Jones is considering an opportunity that requires an inv…
Joe Jones is considering an opportunity that requires an investment of $1,000,000 today and will provide $300,000 one year from now, $400,000 two years from now, and $600,000 three years from now. The Internal Rate of return of this project is closest to:
Read DetailsYou are considering two mutually exclusive projects with the…
You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 4% rather than 6%? If so, what should you do? Year Project A Project B 0 ($297,000) ($236,000) 1 $0 $120,000 2 $0 $83,900 3 $338,000 $53,000
Read Details