QBC system has an outstanding issue of $1000 par-value bonds with a 9% coupon interest rate. The issue pays interest annually and has 12 years remaining to its maturity date. If the bond of similar risk earning 10% rate of return, the selling price of the QBC system bond today is:

a.$931.86

b.$318.63

c.$930.01

d.$613.23

XYZ Ltd is about to undertake a project and has computed the NPV of the project using a variety of discount rates:

Discount rate used NPV

10% +$130

15% +$50

20% -$50

What is the approximate IRR of this project?

a.17.5%

b.20%

c.15%

d.22.5%