Corporate bond yields and government bond yields

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1. Project L costs $35,000, its expected cash inflows are $14,000 per year for 10 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

2. Risk shock and bonds market,

Use the market of corporate bonds and government bonds to graphically show how will riskaffects the risk spread defined as the difference between the corporate bond yields and the government bond yields.

Reference no: EM132016902

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