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9. A company has issued 2 million bonds that have 3 years to maturity with the face value per bond being $100 and coupon rate
9. A company has issued 2 million bonds that have 3 years to maturity with the face value per bond being $100 and coupon rate of 10% p.a. paid half-yearly. If the company wants to buy back all of its issued bonds, how much would it have to pay if the current yield required by bond investors is 7% p.a.? A. $185,078,888 B. $200,000,000 C. $215,745,896 D. $215,985,659 E. $228,599,238 10. At the break-even NPV point, A. the present value of operating cash flows equals the initial amount invested. B. the NPV of the project is equal to zero. C. the project's IRR is equal to the project's required rate of return. D. all of the above. E. none of the above
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