1. Seether Co. wants to issue new 10-year bonds for some much-needed expansion projects. The company currently has 8.8 percent coupon bonds on the market that sell for $847.19, make semiannual payments, and mature in 10 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
11.30%
11.10%
5.70%
11.40%
11.70%
2. What is the net present value of a project with the following cash flows if the required rate of return (cost of capital) is 12.0 percent?
a. -$1,208.19
b. -$842.12
c. $729.09
d. $1,311.16
e. -$1,574.41