4. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1112, then the YTM for this bond is closest to: A) 3.4% B) 6.8% C) 8.0% D) 9.2% E) None of the above. 5. Consider the following investment alternatives: Investment Rate Compounding A 6.25% Annual B 6.10% Daily C 6.125% Quarterly D 6.120% Monthly Which alternative offers you the highest effective annual rate of return? A) Investment A B) Investment B C) Investment C D) Investment D E) Investment B and C 6. If the current inflation rate is 5%, then the nominal rate necessary for you to earn an 8% real interest rate on your investment is closest to: A) 13.0% B) 13.4% C) 4.9% D) 3.0% E) None of the above 7. Wyatt Oil is considering drilling a new oil well that is initially expected to produce oil at a rate of 10 million barrels per year. Wyatt has a long-term contract that allows them to sell the oil at a profit of $2.50 per barrel. The initial cost of the drilling rig is $175,000,000. If the rate of oil production from the rig declines by 3% per year and the discount rate is 9% per year, then the NPV of this new oil well is closest to: A) -$333,333,000 B) $28,128,000 C) $33,333,000 D) $39,340,000 E) None of the above