1. A 25-year, $25,000 bond carries a coupon rate of 6.6% and was sold with 12 years left. The bond was sold for $26,010, what is the bonds yield to maturity? What is the effective yield to maturity?
2. A project has annual cash flows of $3,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 12.35%. If the firm's WACC is 8%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
3. A $250 000, 6.5% bond with semi-annual coupons redeemable at par is bought 17.5 years before maturity at 78.25. What was the approximate yield rate?