The greatest degree of interest-rate risk

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1. Project L costs $56,598.62, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.

2. Which of the following bonds will have the greatest degree of interest-rate risk?

A. A 10-year, 6% semi-annual coupon with a yield of 6%

B. A 10-year 5% semi-annual coupon with a yield of 6%

C. An 8-year, 6% semi-annual coupon with a yield of 6%

D. An 8-year, 5% semi-annual coupon with a yield of 6%

Reference no: EM132022728

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