Author Question: What is the approximate yield to maturity for a 1,000 par value bond selling for 1,120 that matures ... (Read 38 times)

ishan

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What is the approximate yield to maturity for a 1,000 par value bond selling for 1,120 that matures in 6 years and pays 12 percent interest annually?
 
  A) 8.5 percent
  B) 9.3 percent
  C) 12.0 percent
  D) 13.2 percent

Question 2

Tangshan Mining Company, with a cost of capital of 10 percent, is considering investing in project A, with an initial investment of 1,000,000. Project A is expected to provide equal cash inflows over its 15 year useful life.
 
  Based on this information, the breakeven cash inflow for the project is ________.
  A) 1,000,000
  B) 131,474
  C) 100,000
  D) 66,667



kalskdjl1212

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Answer to Question 1

B

Answer to Question 2

B



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