The bond market requires return

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1. Which one of the following statements is correct?

A. A positive NPV signals a reject decision.

B. Projects should be accepted when the PI is less than one.

C. A payback period that is greater than the required period signals an accept decision.

D. When the IRR exceeds the required return, a project should be accepted.

2. Currently, the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries. The 11.6 percent is referred to as which one of the following?

A. coupon

B. face value

C. discount rate

D. dirty price

Reference no: EM131914162

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