6. What would be the price (to the nearest $) of a $1,000 7-year bond with a coupon rate of 5%, If the required yleld was 7%? a. $1,005 b. $892 C. $902 d. $1,000 7. In discounted cash flow analysis, which of the following is a good decision rule for a normal Investment project? a. If net present value (NPV) is less than 0 then accept b. If internal rate of return (IRR) is greater than the cost of capital then reject c. If IRR is less than the cost of capital then reject d. If NPV is greater than then reject 8. What is the beta of a three-share portfolio including 40% of share A with a beta of 1.2, 15% of share B with a beta of 0.8, and 45% of share with a beta of 1.67 a. 1.32 b 1.2 c. 1.0 d. 3.6 9. If the IRR of a normal investment project is 14%, then the project's NPV would be: a. Positive at a discount rate of 15% b. Positive at a discount rate of 13% c. Negative at a discount rate of 8% d. Negative at a discount rate of 0% 10. If a firm's capital structure is made up of 7 parts equity to 1 part debt, then the firm has ? a, 14% debt b. 70% equity 12.5% equity d. 87.5% equity