Please help!! Thank you!!
Posted once on here already, but answers were wrong.
The next two questions concern a firm's possible investment in a training program. The immediate cost would be $2,000, but it would enhance the firm's profits by $4,000 over the next two years: the firm's profits would increase by $1,000 in the first year (one year after the initial cost) and by $3,000 in the second year. For the next six questions, consider a 3-year $1,000 Treasury note that pays $10 interest every six months, until it finally matures (after three years) and pays $1,010. Assume that two years and two months have passed since the Treasury originally auctioned the bond. The current market price of the bond is $990. These questions take the viewpoint of a specific consumer, who is considering whether to buy the bond as a (financial) investment. This decision depends on the same methodology that a firm would use for a capital investment and depends on the specific consumer's opportunity cost of funds (OCF). For the present value calculation, the market price represents an immediate payment, what the consumer must pay to buy the bond. Still assuming that the market price of the bond is $990, then the IRR on that bond, as a financial investment, to the nearest tenth of a percent and using numerical methods, is A %. Question 20 (1 point) Retake question Calculate the market yield on the bond, to the nearest tenth of a percent, based on the market price of $990. A %. The next two questions concern a firm's possible investment in a training program. The immediate cost would be $2,000, but it would enhance the firm's profits by $4,000 over the next two years: the firm's profits would increase by $1,000 in the first year (one year after the initial cost) and by $3,000 in the second year. For the next six questions, consider a 3-year $1,000 Treasury note that pays $10 interest every six months, until it finally matures (after three years) and pays $1,010. Assume that two years and two months have passed since the Treasury originally auctioned the bond. The current market price of the bond is $990. These questions take the viewpoint of a specific consumer, who is considering whether to buy the bond as a (financial) investment. This decision depends on the same methodology that a firm would use for a capital investment and depends on the specific consumer's opportunity cost of funds (OCF). For the present value calculation, the market price represents an immediate payment, what the consumer must pay to buy the bond. Still assuming that the market price of the bond is $990, then the IRR on that bond, as a financial investment, to the nearest tenth of a percent and using numerical methods, is A %. Question 20 (1 point) Retake question Calculate the market yield on the bond, to the nearest tenth of a percent, based on the market price of $990. A %
