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plz urgent solve all accurately and completely. ABC has a bond with a coupon of 8 percent that matures in 15 years. The bond is
plz urgent solve all accurately and completely.
ABC has a bond with a coupon of 8 percent that matures in 15 years. The bond is currently priced at $918.556 and has a par value of $1,000. Interest is paid semiannually. The yearly yield to maturity is percent. You are considering two independent projects with the same discount rate of 11 percent. Project A costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make. Project B costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and why? O a Project A; because its IRR exceeds the discount rate O b. Both projects; because their NPVs are both positive and their IRRs exceed the discount rate. O C. Project B; because it is the larger-sized project with a positive IRR O d. Project B; because its RR exceeds the discount rate O e. Project B: because it has the larger NPVStep by Step Solution
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