12 Microsoft plans to issue $10 million of bonds with a coupon rate of 8 percent, a par value of $1,000, semiannual coupons, and 30 years to maturity. The current market interest rate on these bonds is 10 percent. In three year, the interest rate on the bonds will be either 12 percent, 10 percent or 8 percent with equal probability. If the bonds are noncallable, what is the price of the bonds today? (Assume investors are risk-neutral.) 5 points 8 01:41:37 Numeric Response 23 Bruno's Lunch Counter is expanding and expects operating cash flows of $30,100 a year for years as a result. This expansion requires $95,400 in new fixed assets. These assets will be worth 40,000 at the end of the project (Tax rate is 25%). In addition, the project requires $7,400 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent? 5 points 8 00:53:35 Numeric Response