Order to finance new project using clean technologies

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1) You invest in a project with the amount of $250,000. When the project ends, at the end of the first year this project will have a cash flow of $145,000 and at the end of the second year this project will have a cash flow of $152,000, this is the last year of this project. Calculate the yield for this investment.

2) Your company has decided to issue a green bond in order to finance a new project using clean technologies. This bond will have a face value of M$1,000 and will have a maturity of three years with a coupon rate of 10% which is paid at the end of each year. If the yield used by investors for this kind of projects in similar companies is 8%. Which will be the price in the market for this bond?

Reference no: EM131860737

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