5) A project has cash flows of-$161,900, 560,800, s62,300, and $75,000 for Years O to3, respectively. The required rate of return is 13 percent. Based on the internal rate of return percent for this project, you shouldthe projeet. A) 9.67; accept B) 9.67; reject C) 10.41; reject D) 10.41; accept E) 11.67; accept 6) Which one of the following bonds is the least sensitive to interest rate risk? A) 7-year; 6 percent coupon B) 3-year, 4 percent coupon C) 7-year, 4 percent coupon D) 3-year; 6 percent coupon E) 5-year; 6 percent coupon 7) Bare Trees United issued 20-year bonds 3 years ago at a coupon rate of 8.5 percent. The 7) bonds make semiannual payments. If these bonds currently sell for 91.4 percent of par value, what is the YTM? A) 8.98 percent B) 8.42 percent C) 9.27 percent D) 9.53 percent E) 9.13 percent s) Which one of the following statements correctly defines a time value of money relationship? A) Time and present value are inversely related, all else held constant B) Interest rates and time are positively related, all else held constant. C) An increase in a positive discount rate increases the present value. D) Time and future values are inversely related, all else held constant. EAn increase in time increases the future value given a zero rate of interest. 9) What is the EAR if a bank charges you an APR of 7.65 percent, compounded quarterly? 9) A) 8.02 percent B) 7.87 percent C) 8.38 percent D) 8.11 percent E) 7.91 percent