Find the payback period for the project

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Reference no: EM131975183

1. Find the payback period for the following project: the discount rate 7% Project X Initial Outlay $16,900

Year 1 $5,455

Year 2 $5,440

Year 3 $5,681

Year 4 $8,366

2. Suppose you purchased a ten-year bond (face value = $1000) with 8% coupon rate at par value. The bond makes semiannual coupon payments. You hold the bond for 3 years, and sell the bond immediately after its sixth coupon payment is paid out. If the bond’s yield to maturity is 5% when you sell the bond. What is the sale price of the bond?

A. $1000

B. $1015.32

C. $1175.36

D. $1185.72

Reference no: EM131975183

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