1. What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
Current YTM for the bonds
2. A private placement:
occurs when an investor purchases an allocation of a stock at an IPO
occurs at the money market
is only available to a limited number of purchasers
is executed on a stock exchange
3. Project A has a pattern of high cash inflows in the early years, while Project B has majority of its cash inflows in the later years. At the current required rate of return, Projects A and B have identical NPVs. Assuming that interest rates are increasing, other things held constant, this change will cause B to become more preferable than A.
True
False