Total 20 Questions (19 Multiple choice and 1 calculation). Multiple choice 5 points/ Calculation question-10...

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Total 20 Questions (19 Multiple choice and 1 calculation). Multiple choice 5 points/ Calculation question-10 points: Total 105 points 1. The market-required rate of return on a bond that is held for its entire life is called the: A. coupon rate. B. yield to maturity. C. dirty yield. D. call premium. E. current yield. 2. Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy based on IRR if the firm requires a rate of return of 17.5 percent? Year Cash Flow 0 $132,000 97,000 42,000 28,000 2 A. Yes, because the project's rate of return is 16.45 percent B. Yes, because the project's rate of return is 11.47 percent C. No, because the project's rate of return is 16.45 percent D. No, because the project's rate of return is 11.47 percent E. No, because the internal rate of return is zero percent

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