If a bond was bought in 1995 for 1000 and it was sold in


1. If a bond was bought in 1995 for $1,000 and it was sold in 2008 for $850, what may have caused the price of the bond to go down? Explain

2. Unsaved Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$82900 $10900 $25400 $33800 $38800 $50600 What's the net present value (NPV) of the project, assuming 8.20% discount rate?

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Financial Management: If a bond was bought in 1995 for 1000 and it was sold in
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