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a) 2.2 b) 4.86 )3.66 d) 3,96 e) Does not pay 12) What are the cases in which the IKk and NPry mign words when

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a) 2.2 b) 4.86 )3.66 d) 3,96 e) Does not pay 12) What are the cases in which the IKk and NPry mign words when is the IRit unreliable? givethe same ) Mutually Exclusive Projects the some swwer in ii) When the NPV is equal to 0 ill) Non-Normal Cash Flows iv) When the project involves aliens a) i and li only b) ii and iv only c) i and ii only d) i, ii, and iii e) all of the above 13) The Rapture Marine Corporation has $1,000 face value bonds issuod wiwh s7 A0% coupon They mature in 9 years and call for semi-annual payments and currenly have a yield to maturity of 5.5%, what will happen to the price of the bond ifthe market imerest rate suddenly increases to 10%? a). The bond price will increase but still trade at a discount b) The bond price will increase and trade at a premium c) The bond price will decrease but still trade at a premium d) The bond price will decrease and trade at a discount e) The bond price will remain unchanged 14) Adventureland Corporation offers 7.25 percent coupon bonds with semiannual payme a yield to maturity of 3.41 percent. The bonds mature in 11 years What is the market per bond if the face value is $1,000? a) $1,349.77 b) $1,011.93 c) $1,752.82 d) $1,801.14 e) SI,513.39

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