Question $7$

$4$ pts

What is the current value of a $$1,000$ par value bond that matures in $5$ years, has a coupon rate of $11\%$ with interest paid semi$-$annually, and a yield to maturity of $12\%?$

$$983\mathrm{.}66$

$$1023\mathrm{.}77$

$$963\mathrm{.}20$

$$929\mathrm{.}66$

Question $8$

$4$ pts

You are using capital budgeting techniques to evaluate the purchase of a new piece of equipment. What is the best description of an opportunity cost? Your firm owns a warehouse that it rents. The new equipment will occupy this space. This means that this you will forgo the warehouse rent income.

In the project cash flow, we will treat this as operating income.

In the project cash flow, we will treat this as a cash inflow.

In the project cash flow, we will treat this as a cash outflow.

In the project cash flow, we will treat his as cash

neutral.

Can you also do question $8$ please!!