What happens to the price of a six-year bond with an 8


1. What happens to the price of a six-year bond with an 8% coupon when interest rates change from 9% to 8%?

2. What is the NPV of a project that costs $285,000 today and no cash inflows for 3 years, followed by cash inflows $95,000 annually for the next five years, if the opportunity cost of capital is 2%?

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Financial Management: What happens to the price of a six-year bond with an 8
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