Question 3 (5 points) One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent and pay interest annually. Today, the market rate of interest on these bonds is 7.2 percent. What is your rate of return by buying the bonds one year ago and holding until today? 6.50% 0.95% 1.50% 0.45% Previous Page Next Page Page 3 of 19 Submit Quiz 16 of 19 questions saved $10 DD 8 144 f6 13 f4 f1 $2 10 ? # $ % & @ 8 2 3 4 5 6 O Q W E R T Y UQuestion 18 (5 points) Project A has the following cash flows: CO = +3,000, C1 = -1,300, C2 = -1,500, and C3 = -1,500. The cost of capital is 18 percent. What is the IRR of Project A and what would be your investment decision? O 19.86% and reject Project A O 15.85% and accept Project A 15.85% and reject Project A 19.86% and accept Project A Previous Page Next Page Page 18 of 19 Submit Quiz 16 of 19 questions saved hp 10 $7 f8 DDI 144 2 & @ # $ % 8 9 3 4 5 6 Y U O P Q W E Re Left:0:30:03 Logan Knudtson: Attempt 1 Question 15 (5 points) If the cash flows for Project M are Co - -1,000; C1 - +400; C2 = +500; and C3 = +500, what is the IRR for the project? 25% O 18% 11% O 14% Previous Page Next Page Page 15 of 19 Submit Quiz 16 of 19 questions saved hp f8 f9 10 F17 144 DDI f4 101 f5 f6 - f2 f3 ? % & K # 9 @ 2 3 4 5 6 8 O