0 1 3 (Quantitative Question) You are considering two mutually exclusive projects - Projects A and B. The cash flows for the projects are given in the following table: 2 4 -$50 25 20 20 15 B $100 20 40 50 60 At what cost of capital are you indifferent between the two projects? * (Round to 2 decimal places.) Write your answer both in the spaces above and on the empty pages on which you will show your work for each part (including timeline) A 12 year bond has an annual coupon rate of 9%. The bond has a yield to maturity of 7%. Clearly STATE which of the choices) is/are CORRECT and which are INCORRECTIf a statement is incorrect, you must briefly explain why. (Note: You can write several full sentences in the answer boxes but keep the explanations to 5-30 words) a. If market interest rates decline, the price of the bond will also decline. b. The bond is currently selling at a price below its par value. c. If market interest rates remain unchanged the bond's price exactly one year from now will be lower than it is today. d. The bond should currently be selling at its par value. e. If market interest rates remain unchanged, the bond's price exactly one year from now will be higher than it is today. (Quantitative Question) Lloyd Industries raised $28 million in order to upgrade its roller Kiln furnace for the production of ceramic tile. The company funded this by issuing 15-year bonds with a face value of $1000 and a coupon rate of 6.2% paid annually. The below table shows the yield to maturity for similar 15 year corporate bonds of different ratings issued at the same time, Security Corporate Corporate Corporate BBB Corporate BB Corporate Yield (%)5.70% 5.80 6.00% 6.60% 6.90% When Lloyd Industries issued their bonds, they received a price of $101942. a. What is the YTM of the bond? (Round to 2 decimal places) t. What is most likely to be the rating these bonds received? Write your answers both in the spaces above and on the empty pages on which you will show your work for each part (Including a timeline for parta)