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TO bmhomework-finalson (1) (Korumal Grnm) - Microsoft Word Girls Ekle Sayfa Duzeni Bavurular Postalar Gozden Gecir Gorunom amal Grnm Bu dosyanin kaynai bir Internet konumu;

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TO bmhomework-finalson (1) (Korumal Grnm) - Microsoft Word Girls Ekle Sayfa Duzeni Bavurular Postalar Gozden Gecir Gorunom amal Grnm Bu dosyanin kaynai bir Internet konumu; dosya gvenli olmayabilir. Daha fazla ayrnt iin tklatn. Dzenlemeyi etkinletir Calculate Profitability Index (PI) of B Project. Decide whether this project is accepted or not. Explain the reason in terms of PI method(12 points) d) Calculate discounted payback period of B Project. Show all calculations in detail on the table or you can draw time line(14 points) 2. You are considering investing in one of these two bonds. Both bonds have 10 years remaining to maturity and par value of TL 1.000. Bond A has a semiannual coupon rate of 4% and Bond B has a semiannual coupon rate of 12%. a) Calculate the price of these bonds when their yield to maturity is 8% ( 20 points) b) Suppose yield to maturity on these bonds increases by 2% now. Calculate the price of these bonds with this new yield to maturity (20 points). c) Calculate the percentage change in their prices relative to their prices at 8% yield to maturity. Determine the bond which has a largest change in its price as a result of these in its yield to maturity. Please explain with two or more sentences (10 points) 1/1 Sozcuk 426 %6150 o w 03 09.06

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