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GE issued a corporate bond with 8% of coupon rate and semiannual payment. It is current YTM is 5%, and it will mature in 20
GE issued a corporate bond with 8% of coupon rate and semiannual payment. It is current YTM is 5%, and it will mature in 20 years. What should be the bond price. You are analyzing a proposed project and have compiled the following information. Required return: 14.50 percent Required discount payback period: 3 years 1) What is the net present value of the proposed project? Should it be accepted according to this criterion? 2) What is the discount payback period of the proposed project? Should it be accepted according to this criterion? You are considering the following two mutually exclusive projects. The required rate of return is 13.8 percent for both projects. What are the NPV and IRR (use Excel or financial calculator of the two projects? Which project should you accept? Explain why
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