1. Emma is considering purchasing bonds with a par value of ?$10000 . The bonds have an annual coupon rate of 8 ?% and six years to maturity. The bonds are priced at ?$9820. If Emma requires a 9 ?% ?return, should she buy these? bonds?
2. Cooper Companies has identified two mutually exclusive projects. Project A has cash flows of -$50,000, $24,000, $28,000, and $32,000 for Years 0 to 3, respectively. Project B has a cost of $40,000 and annual cash inflows of $21,000, $23,000, and $24,000. At what rate would you be indifferent between these two projects?