Corporate bonds from Hyren Airlines are selling at 106. 133, bonds from Xyx Motors are selling at 97. 701, and bonds from Ergar Appliances are selling at 101. 294. If all of the bonds mentioned have a par value of $1,000 apiece, how much will it cost George to purchase one from each corporation? a. $3,051. 28 b. $3,000. 00 c. $3,305. 12 d. $2,694. 88.

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?