1. A mining company plans to mine a beach for rutile. To do so will cost $10 million up front and then produce cash flows of $3 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $2 million. If the cost of capital is 11%, then what is the MIRR for this project using the discounting method?

A) 12.5%

B) 11.07%

C) 10.92%

D) 8.52%

2. You own a 6% bond. 1000$ par value, maturing in 10 years with semi-annual coupons and a market value of 1090$. What is the capital gains yield?

A. 4.853%

B.5.504%

C.0.653%

D.-3.077%

E.-0.0651%