1. A corporation issues a 9 percent coupon bond with 13 years maturity and $1,000 face (par) value. If the current market price of this bond is $1000, find its yield to maturity.

a. 6.43%

b. 6.04%

c. 9.00%

d. 10.07%

e. none of the answers is correct

2. GreenStone inc has a project with initial investment requiring $-105,000 and the following cash flows will be generated because of the project: $26,250; $51,000; $50,000; and $50,000 respectively at the end of each year for the next four years. If the required rate of return is 0.12, find the Net Present Value (NPV) of the project.

a. $19,308

b. $10,494

c. $20,987

d. none of the answers is correct

e. $26,459