Question: question 1 mestion Completion Status: QUESTION 1 Five years ago, Ovechkin Ovens issued bonds that pay annual coupons, have a face value of $1,000, have

question 1

mestion Completion Status: QUESTION 1 Five years ago, Ovechkin Ovens issued bonds that pay annual coupons, have a face value of $1,000, have a coupon rate of 7.63%, and were scheduled to mature 19 years after being issued. One year ago, you bought one of those bonds for $858.00. The bond just paid a coupon. If the percentage return on your bond was 3.60% over the past year (from 1 year ago to today), what is the price of the bond today? a. $965.19 (plus or minus $0.50) b. $812.59 (plus or minus $0.50) c. $901.83 (plus or minus $0.50) d. $903.41 (plus or minus $0.50) e. None of the above is within $0.50 of the correct answer QUESTION 2 Tribal Council is evaluating a project that would require an initial investment of $76,000 today. The project is expected to produce annual cash flows of $7,400 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $6,300. What is the IRR of the project? a. 9.74% (plus or minus 0.02 percentage points) b. 8.99% (plus or minus 0.02 percentage points) c. 10.62% (plus or minus 0.02 percentage points) d. 8.29% (plus or minus 0.02 percentage points) e. None of the above is within 0.02 percentage points of the correct answer Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers

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