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Page 4 - 0 Which of the follouing bat illustrates the...

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Unformatted text preview: _' 0. Which of the follouing bat illustrates the problan imposed by capital rationing? Accepting projects with the highest NPVs first . Accepting projects with the highest [RRs first . Bypassing projects that have positive N?Vs . Bypassing projects that have pofitive IRRS ,Part II. Problem (2.5 points) at will be the monthly payment ifyou take out a $125,000 thirty-year mortgage at an interest rate (APR) of 6%? How much of the first payment is interest, and how much is amortization? Part III. Question (2.5 points) . 15-year Treasury bond is issued with face value Of $1,000, paying interest of $40 per year. If market yields tease shortly after the T-bond is issued, what happens to the bond’s (a) coupon rate? (b) price? (c) yield to aturity? (d) current yield? Explain. ...
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