Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
please answer these 3 Westover Industries needs to expand their warehouse space next year. They have been negotiating with contractors and are considering the two
please answer these 3 Westover Industries needs to expand their warehouse space next year. They have been negotiating with contractors and are considering the two best offers. The first contract requires payment in full of $379,500 on the day the job commences. The second contract requires twelve monthly payments of $33,300, starting on the day the job commences. The discount rate is 9%. If the cost is the final deciding factor, Westover should accept the _______ contract because it costs less in today's dollars than the other contract. A) second; $2,498.01 B) first; $4,138.46 C) second: $1,871.43 D) first: $6,008.12 E) first; $8,110.67 Martha owns a 7% coupon bond that has 13 years to maturity. The bond pays interest annually and is currently selling for $1,034.50. What is the yield to maturity on this bond? A) 6.77% B) 6.66% C) 6.88% D) 6.60% E) 6.50% You purchased a bond one year ago for $839.67 and just received the annual coupon of $81. You sell the bond today for $829.31. What is your real return if inflation was 5%? A) 6.47% B) 10.26% C) 3.41% D) 9.80% E) 6.02%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started