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Questions are in the picture. Thank you! & a 11 A bond with a $10,000 par value has an 6.35% coupon rate. It will mature

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& a 11 A bond with a $10,000 par value has an 6.35% coupon rate. It will mature in 9 years, and coupon payments are mado "eoml-annually". Procont annual ylelds on similar 6.68%. What should current price be; 9,851.25 Look out! This is a semi-annual coupon payment bond. We'll need to b. 9,858.95 divide the rate by two (frequency of compounding) and multiply the term by two. C. 9,863.35 Semi-annual is twice (2) per year. We'll help with the answer on this one too! d. 9,872.25 Expect more of those on future quizzes (semi annual) 12 Using Internal Rate of Return (IRR) for analysis can be flawed because a. the discount rate can be overstated b. project cash flows are expected to be reinvested at the Internal rate of return C. the project's cash flows can be back loaded d interest rates can change over time for extended projects 13 The discount rate which forces a projects NPV to equal zoro is the prime rate b the crossover rate the mastrandroa rato Internal rate of return 14 Expansion projects differ from replacement projects because (best answer) a. replacement projects are considered less riskler b. expansion projects require new managers C. expansion projects generally require and increase in working capital accounts d expansion projects are generally longer than replacement projects e expansion projects usually require a larger initial outlay than replacement projects 16 An office building is available for sale in Fairlawn. Cash flows from rent amount to $95,000 per year, every year, for the next ten years. Financing arrangements are made to borrow at 7.25%. The cost to buy the building is $500,000. Calculate its NPV. 159,597.21 150,315.55 135,327.88 d. 122.210.55 d b

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