Question
A 10-year, semi-annual zero-coupon bond has a face value of $1,000 and 7% yield, what is the market value of the bond? Group of answer
A 10-year, semi-annual zero-coupon bond has a face value of $1,000 and 7% yield, what is the market value of the bond? Group of answer choices d) $258 e) $503 b) $644 a) $1,000 c) This bond should be valued at $0 since its coupon rate is 0%
Which of the following is NOT true about IRR as an investment rule?
Group of answer choices
c) Invest if IRR is less than a predetermined rate of return.
b) IRR can be negative
e) Reject the project if IRR is lower than a predetermined rate of return
a) IRR is the discount rate that makes the NPV of an investment equal to zero.
d) Invest if IRR is greater than a predetermined rate of return
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