Answer Happy

Question 40 Quantum Inc. offers a bond with annual coupon payments and a coupon rate of 8%. The yield-to-maturity is 4.76% and the maturity date is 5 years from now. What is the current price of this $1,000 face value bond? O $1,141.21 O $1,000.00 $858.79 1 pts O $1,157.81

Question 41 1 pts You are considering the purchase of an apartment building that is currently under construction. The building is expected to generate $350,000 annually for 5 years at which time you estimate it has a value of $1,500,000. If your opportunity cost of capital is 12%, what is the maximum amount you should pay for this building (rounded to the nearest dollar)? O $2,112,812 O $1,750,000 O $3,250,000 O $1,721,455