A 10-year annual coupon bond was issued four years ago at par. Since then the bond's yield to maturity (YTM) has decreased from 9% to 7%. Which of the following statements is true about the current market price of the bond?

a	The bond is selling at a discount
b	The bond is selling at par
c	The bond is selling at a premium
d	The bond is selling at book value
e	Insufficient information

2) A company is trying to decide between two independent projects. Each project has a cost of capital of 12%. Project A has an IRR of 11.4%. Project B has an IRR of 11.1%. Which project should the company choose if the goal of the firm is to maximize shareholder wealth?

	Project
	Project B
c)	Both projects should be chosen
d)	Neither project should be chosen
e) This question cannot be answered unless we know the NPV of each project.