1. Suppose there is a 9% coupon bond with exactly 25 year until maturity selling for $1276.76. What is the average rate of return you will earn if you bought the bond at this price and held the bond until maturity?
2. If you deposit $100 per quarter at the end of each quarter for 10 years, what is the present value of these payments when rate of return is 12% per year?
3. Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow –$2,200 $830 $840 $760 $540 $340