1) The Wild Rose Company has $1,000 par value (maturity value) bonds outstanding at 9 percent interest. The bonds will mature in 17 years with annual payments.

Compute the current price of the bonds if the present yield to maturity is: (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

	Price of the bond
a. 7 percent	$
b. 8 percent	$
c. 13 percent	$

2)

A firm buys a new piece of equipment for $14,761, and will receive a cash flow of $2,300 per year for ten years.

What is the IRR? (Use a Financial calculator to arrive at the answers. Round the final answer to the nearest whole percent.)

IRR %