What is the expected price of the bond

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1. A 5-year Treasury bond with par value of $1,000 has a 6% coupon rate and pays interest every year. The bond is three years old and has just made its third payment. The market now only requires a 5% return on the bond. What is the expected price of the bond?

2. Project K costs $40,000, its expected cash inflows are $12,000 per year for 10 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent.

Reference no: EM131975076

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