a) Calculate NPV for an investment option having an initial cash outflow(C0) Rs. 10,000 and...

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Accounting

a) Calculate NPV for an investment option having an initial cash outflow(C0) Rs. 10,000 and cash inflow after one year (C1) Rs. 18,000, if the discount rate is 2.1%.

b) A 10-year bond is issued with a face value of $1,000, paying interest of $60 a year. If yields to maturity increase shortly after the issue, what happens to the bonds coupon rate?

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