Appropriate discount rate for the project cash flows

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Reference no: EM132020346

1. What is the market value of a bond that will pay a total of 21 annual coupons of $90 each over the remainder of its life? Assume the bond has a $1,000 face value and a 7% / year yield to maturity.

a. $1,100.17

b. $1,135.90

c. $1,196.36

d. $634.86

e. $1,216.71

2. You are considering a project that costs $150 and has expected cash flows of $55, $60.50, and $66.55 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?

a. $19.79

b. $64.10

c. $0.00

d. $0.71

e. The NPV is negative

3. For technical analysis to generate excess returns, markets must be semi strong form efficient.

True

False

Reference no: EM132020346

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