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Have some trouble completing some of these question. Some help with explanation, will highly be appreciated! 1. A 2-year maturity bond with face value of

Have some trouble completing some of these question. Some help with explanation, will highly be appreciated!

1.A 2-year maturity bond with face value of $1000 makes annual coupon payments of $80. At a yield to maturity of 8 percent, the bond must be selling for:

2.Strong form efficiency states that the market incorporates any and all pertinent information in the stock price. Strong form efficiency implies that:

3.If the coupon rate is lower than current interest rates, then the yield to maturity will be:

4.Windsor Ltd is considering a project, which will involve the following cash inflows and (out) flows:

Year Expected net cash flow ($'000)

0 -400

1 40

2 300

3 300

What will be the NPV (net present value) of this project if a discount rate of 10% is used?

5.A 2-year maturity bond with face value of $1000 makes annual coupon payments of 8 percent per annum and is currently selling at par. What return will you earn on the bond if you buy it today and sell it at the end of the year when the yield to maturity is 8 percent?

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