Question: Answer both the questions please QUESTION 1 A bond with a face value of $8000 pays interest of 10% per year. This bond will be
Answer both the questions please

QUESTION 1 A bond with a face value of $8000 pays interest of 10% per year. This bond will be redeemed at par value at the end of its 15-year life, and the first interest payment is due one year from now. If you want a 12% return rate, what is the highest price that you'd be willing to pay for the bond? (please round your answer to the nearest integer) QUESTION 2 Evaluate a combined cycle power plant on the basis of the Pw method when the MARR is 12% per year. Pertinent cost data are as follows: (Please round to nearest integer and place a negative in front of the number if applicable, i.e.-2000, DO NOT put a positive sign i.e. +2000) Investment Cost $13,000 Useful Life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 st-end of 5th year $200 Overhaul cost-end of 10th year $550
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
