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ASAP ASAP PLEASE ANSWER BOTH I WILL RATE!!!!!!!! The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in
ASAP ASAP PLEASE ANSWER BOTH I WILL RATE!!!!!!!!
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 10% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7%, then the price that this bond trades for will be closest to: A. $971 B. $1,456 C. $1,698 D. $1,213 The owners of a chain of fast-food restaurants spend $29 million installing donut makers in all their restaurants. This is expected to increase cash flows by $9 million per year for the next five years. If the discount rate is 6.7%, were the owners correct in making the decision to install donut makers? A. No, as it has a net present value (NPV) of $2 million. B. No, as it has a net present value (NPV) of $1 million. C. Yes, as it has a net present value (NPV) of $8 million. D. Yes, as it has a net present value (NPV) of $5 million Step by Step Solution
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