1. Suppose, Ford Motor Company sold an issue of bonds with a 12-year maturity, a 10% coupon rate, and monthly interest payment. If current market price of the bond is $450, what will be the yield to maturity (YTM)?

4. (1) Suppose you are a financial analyst of Black Berry Corporation. The director of capital budgeting has asked you to analyze to proposed capital investment Project A and B. Each project has a cost of $5,00,000 and the cost of capital for both projects is 11%. The projects' net expected cash inflows are: Year Cash Flows (Project A) Cash Flows (Project B) 1 3,25,000 1,75,000 2 1,50,000 1,75,000 3 1,50,000 1,75,000 4 50,000 1,75,000 (A). Calculate NPV. Considering accept rejection criteria, which project will you accept? Explain why? .....[5] (B)Calculate IRR. Considering accept rejection criteria, which project will you accept? Explain why