Rowdy Caynine Inc. has a $1,000 par value bond with a 6-year maturity. The bond has a 5% coupon rate which is paid annually and a 4% yield to maturity. What is the bond price?

Select one:

a. $1,052.42

b. $262.10

c. $1,262.10

d. $1,027.42

2...... You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 11 years. What is the internal rate of return?

Select one:

a. 5%

b. 6%

c. 7%

d. More than 7%

3.........

In the event that the internal rate of return (IRR) for an investment project is positive, the project's net present value (NPV)

Select one:

A. will be negative.

B. will be positive.

C. will equal the internal rate of return.

D. cannot be determined without additional information.

b. $262.10

c. $1,262.10

d. $1,027.42