opera s known as the 31) General Electric Corporation has a S1000 par value bond paying annual interest of 7%. The bond mature willin 20 years. The current yield to maturity for this bond is 99. (3pts) (3pts) What is the annual coupon payment? What is the current price of the bond? _(pt) lp Does par value change if the yield to maturity changes? (yeso) Does the coupon rate change if the yield to maturity increases? (yes / no) 32.) Calculate the NPV for a project with the following cash flows, a cost of capital of 8% and an initial investment of $100,000 Year 1 2 3 4 $25.000 $28.000 $33.000 $40,000 (5 pts) What is the Net Present Value 33. You have the choice of two projects with the following cash flows. Each project has an initial investment of 20,000. Your company wants to choose only one project and will choose the one with the quickest payback Year Project A 1 5 ,000 2 5 .000 3 5,000 4 5,000 250,000 Project B 15.000 5,000 1,000 1,000 1,000 5 250 000 (1 pt What is the Payback period for Project A (in years) What is the Payback period for Project B (in years) Which project would you recommend using the payback rule? Which proiect would you recommend if not using payback? (Circle one): (Circle one): A A I B (1 I B (