Podalic, Inc., has 10% percent coupon bonds on the market with 12 years left to maturity. The bonds make semi-annual payments and have a par value of $1,000. If the bonds have a yield to maturity of 6.9 percent, what is the price?

Select one:

a.$1250.22

b.$1125.50

c.$899.50

d.1796.31

Sarah wants to decide whether to take a project with an initial investment of $500, which yields $100 each year indefinitely, if the required rate of return for Sarah is 19%, what should be her decision?

Select one:

a.Not enough information

b.She should take the project

c.She will be indifferent

d.She shouldnt take the project