1. Calgate Corporation is considering a project that has an up-front cost of $2.5 million and is expected to produce a net cash flow of $800,000 at the end of each of the next 4 years. The project's cost of capital is 12%. What is the company's NPV?
2. Jone Company's bonds currently sell for $1,180 and have a par value of $1,000. They have 8.5% coupon rate and have a 15-year maturity, but they can be called in 6 years at $1,200. What is their yield to maturity (YTM)?
3. Malko Enterprises’ bonds currently sell for $990. They have a 9-year maturity, an annual coupon rate of 9.3%, and a par value of $1,000. What is their current yield?