35. SWH Corporation issued bonds on January 1,2004. The bonds had a coupon rate of 65%, with interest paid semiannually. The face value of the bonds is $1.000 and the bonds mature on January 1, 2019. What is the intrinsic value of an SWH Corporation bond on January 1, 2010 to an investor with a required return of 7%? a. $954.46 b. $967.03 c. $1,000.00 d. $1,033.28 36. A project you are evaluating has a net present value of $53,451. If the project's initial outlay is $170,382, what is its profitability index? a. 1.31 b. 1.44 c. 1.58 d. 1.61 37. Royal Mediterranean Cruise Line's common stock is selling for $62.69 per share. The last dividend was $1.75, and dividends are expected to grow at a 5% annual rate for the forseeable future. Flotation costs on new stock sales are 7% of the selling price. What is the cost of Royal's new common stock? a. 6.49% b. 7.28% c. 8.15% d. 9.98% 38. Peerless Securities has an issue of S1,000 par value bonds with 16 years remaining to maturity. The bonds pay 8.8% interest on a semi-annual basis. The current market price of the bonds is $1,075. What is the yield-to-maturity of the bonds? a. 5.70% b. 6.13% c. 6.87% d. 7.96% 10 of 11