Question: Net Present Value 1 PAR VALUE $ 10,000,000 N= 2 years COUPON RATE 15% N.A. Semi-annual Bond Emission Date: Aug-23-14 Buy on: Apr-23-15 Opportunity Rate

Net Present Value

1 PAR VALUE $ 10,000,000 N= 2 years COUPON RATE 15% N.A. Semi-annual Bond Emission Date: Aug-23-14 Buy on: Apr-23-15 Opportunity Rate 14% EA What is the new NPV $$$ $10,417,199.24 2 PAR VALUE $ 1,000,000 N= 3 years COPUPON RATE 18% N.A.Q CD Emission Date: Sep-18-2005 Buy on: Oct -18- 2007 Opportunity Rate 20% EA What is the new NPV $$$ $1,009,376.27 3 PAR VALUE $ 3,250,000 N= 5 years COUPON RATE 25% N.A. semi-annual T-Bill Emission Date Nov-7-2006 Buy on: June-7-2008 Opportunity Rate 24% EA What is the new NPV? $$$ $3,485,233.85

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