1. Consider the following two mutually exclusive projects:

Year	Cash Flow (X)	Cash Flow (Y)
0	-$16700	-$16700
1	6630	7130
2	7210	7810
3	4730	3470

What is the IRR (%) of Project X?

What is the IRR (%) of Project Y?

What is the crossover rate (%) for these two projects?

2. You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000.

Company (Ticker)	Coupon	Maturity	Last Price	Last Yield	EST $ Vol (000s)
Xenon, Inc. (XIC)	7.300	Jan 15, 2039	94.373	??	57,381
Kenny Corp. (KCC)	7.310	Jan 15, 2038	??	5.52	48,960
Williams Co. (WICO)	??	Jan 15, 2045	94.925	7.22	43,821

What price would you expect to pay for the Kenny Corp. bond?

Price_________