Question $6$

$0\mathrm{.}5$ pts

A $$1,000$ par value bond pays interest of $$35$ each quarter and will mature in $10$ years. If your annual required rate of return is $12$ percent with quarterly compounding, how much should you be willing to pay for this bond?

$$ $$825\mathrm{.}49$

$$ $$1,115\mathrm{.}57$

$$ $$941\mathrm{.}36$

$$1,051\mathrm{.}25$Question $15$

$0\mathrm{.}5$ pts

Which of the following is a rationale for using the NPV method in capital budgeting?

A project whose NPV is positive will increase the value of the firm if that project is accepted.

A negative NPV signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.

A project is considered acceptable if it has a negative NPV$.$

$$ A project is not considered acceptable if it has a positive NPV$.$

Question $16$

$0\mathrm{.}5$ pts

Tara is evaluating two mutually exclusive capital budgeting projects that have the following characteristics:

$\backslash$table$[[$Year$,$Project Q$,$Project R$],[0,$$$(4,000),$$$(4,000)$