Home Depot just issues a 10-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 4.4 percent from the current rate of 4 percent
7.35 percent decrease
3.02 percent decrease
9.32 percent increase
3.02 percent increase
9.32 percent decrease
Projects A and B are mutually exclusive and both have an initial cost of $78,000. Project A has annual cash flows for three years of $28,000, $31,500, and $42,300, respectively. Project B has annual cash flows for three years of $27,000, $30,500, and $44,900. What is the crossover rate?
8.10 percent
5.16 percent
15.20 percent
18.82 percent
3.33 percent
7.35 percent decrease
3.02 percent decrease
9.32 percent increase
3.02 percent increase
9.32 percent decrease
Projects A and B are mutually exclusive and both have an initial cost of $78,000. Project A has annual cash flows for three years of $28,000, $31,500, and $42,300, respectively. Project B has annual cash flows for three years of $27,000, $30,500, and $44,900. What is the crossover rate?
8.10 percent
5.16 percent
15.20 percent
18.82 percent
3.33 percent
