Author Question: PR Corporation just issued 1,000 par 20-year bonds. The bonds sold for 936 and pay interest ... (Read 126 times)

james0929 · **on:** Jul 10, 2018

PR Corporation just issued 1,000 par 20-year bonds. The bonds sold for 936 and pay interest
semiannually. Investors require a rate of 7.00 on the bonds. What is the amount of the semiannual
interest payment on the bonds?

A) 32.00 B) 21.75 C) 64.50 D) 55.00

Question 2

The internal rate of return is the discount rate that equates the present value of the project's future
free cash flows with the project's initial outlay.

Indicate whether the statement is true or false