Strategic ............Financial

timer Asked: Jan 7th, 2015

Question description

YEARYTMProject 1Project 2


Show your computation below the question or at the back of this pages .

1.The Table above Gives the yield to maturity for bonds with approximately the same risk as Project 1 and Project 2 , for which cash flows are also given

Find the NPV of each project using the three yield-time to maturity?

2, A corporate bond with $1000 maturity value carries a 6% coupon rate . It currently makes the interest payments once a year . If the current return on similar bond is 5% , what is the price of this 10-year bond?

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