1. You buy a new piece of equipment for $26,621, and you receive a cash inflow of $3,500 per year for 15 years. What is the internal rate of return?
2. Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. What is the bond’s nominal yield to call?
A.6.61%
B.6.54%
C.8.54%
D.6.75%
E.6.89%