1. The Griswold Co. wants to raise $8 million by selling some coupon bonds at par. Comparable bonds in the market have a 6 percent coupon that is paid semiannually, 8 years to maturity, and are selling at 96.9 percent of par. What coupon rate should the Griswold Co. set on their bonds?
a) 5.82 percent
b) 6.00 percent
c) 6.19 percent
d) 6.25 percent
e) 6.50 percent
2. Annuity will pay you $250 every 6 months for 10 years. If you require a 10% return, what is the most you should be paying for this investment
A. $2,128
B. $3,166
C. $5,000
D. $1,200
E. $2,500
3. What data variable has more of an impact on the sensitivity analysis from a scenario based case?
a) variable cost per units sold
b) units sold
c) cost of equipment
d) price of the units sold