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first pic is 5a, second is 5b, and third is 5c. Thanks. Merlin's Publications has $1,000 face value bonds which currently sell for $1200.28. They

first pic is 5a, second is 5b, and third is 5c. Thanks. image text in transcribed
image text in transcribed
image text in transcribed
Merlin's Publications has $1,000 face value bonds which currently sell for $1200.28. They have a 9.01% annual coupon rate. What is the current yield on these bonds? Select one: a. 12.43% b.4.42% c. 7.51 % d. 3.15% e. 12.42% 1) What are the cases in which the IRR and NPV might not give the same answer? In other words when is the IRR unreliable? 1. Mutually Exclusive Projects 2. When the NPV is equal to 0 3. Non-Normal Cash Flows 4. When the project involves aliens Select one: a. 2 and 4 only. b. all of the above. c. 1, 2, and 3. d. 1 and 2 only e. 1 and 3 only The Rapture Marine Corporation has $1,000 face value bonds issued with a 7.40% coupon. They mature in 9 years and call for semi-annual payments and currently have a yield to maturity of 10%. What will happen to the price of the bond if the market interest rate suddenly increases to 6.8%? Select one: The bond price will increase but still trade at a discount. The bond price will increase and trade at a premium. The bond price will decrease and trade at a discount. The bond price will decrease but still trade at a premium. The bond price will remain unchanged

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