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cooperate financial management Western ing Tine 1 hour, S utes. 45 seconds. . Question Completion Status tal Complex System has an outstanding issue of $1000

cooperate financial management

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Western ing Tine 1 hour, S utes. 45 seconds. . Question Completion Status tal Complex System has an outstanding issue of $1000 per value bonds with a 12.5% coupon interest rate. The issue pays interest semi annually and has 15 years remaining to its maturity date. () If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex System bond sell today? (3 marks] " If the required return at 12.5% instead of 104. what would be the current value of Complex Systems' bond? Contrast this finding with your findings in part i) and discuss. (0.5+0.5-1 mark) (b) XYZ Corporation is considering a project with an initial investment of $50. The cash inflows associated with the project are as follows: Year Expected cash inflows 20 2 15 3 35 Suppose the cost of capital is 15% (r = 0.15), Calculate the payback period for the project. 1 mark) ) Calculate the NPV of the project. (1 mark) 10) Calculate the IRR for the project using a scientific calculator. (4 marks) For the toolbar, press ALT-F10 (PC) or ALT+FN+F10 (Mac). B / Y S Paragraph v Arial 14px EVA IX ORQF ... Type here to search 9

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