1. A municipal bond with a coupon rate of 5.90 percent sells 4,905 and has 10 years until maturity. what is the yield to maturity of the bond?
2. You are considering an investment in a clothes distributer. The company needs $104,000 today and expects to repay you $130,000 in a year from now. What is the IRR of this investment? opportunity? Given the riskiness of the investment? opportunity, your cost of capital is 13 % What does the IRR rule say about whether you should? invest?
3. Consider a 25-year bond with 12 percent annual coupon payments. The market rate (YTM) is 8.5 percent for this bond. The current yield of the bond is _______ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69.