The country inn has bonds outstanding with a par value of $1,000 each and a 6.6 percent coupon. the bonds mature in 7.5 years and pay interest semiannually. what is the current value of each of these bonds if the yield to maturity is 6.8 percent?

ernst's electrical has a bond issue outstanding with ten years to maturity. these bonds have a $1,000 face value, a 5 percent coupon, and pay interest semiminusannually. the bonds are currently quoted at 96 percent of face value. what is ernst's pretax cost of debt?

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.