I, III, and IV only II and III only II, III, and IV only I and II only You are comparing two investment options that each pay 6 percent interest compounded annually. Both options will provide you with $ 12000 of income. Option A pays $ 2,000 the first year followed by two annual payments of $ 5,000 each. Option B pays three annual payments of $ 4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. Option B is a perpetuity. Option B has a higher present value at time zero. Both options are of equal value since they both provide $ 12,000 of income. Option A has the higher future value at the end of year three. Option A is an annuity. The condition stating that the interest rate differential between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate is called: Uncovered interest rate parity. The unbiased forward rates condition. Purchasing power parity. Interest rate parity. The international Fisher effect. The Dry Dock is considering a project with an initial cost of $ 118400. The project’ s cash inflows for years 1 through 3 are $ 37200, $ 54600 and $ 46900, respectively. What is the IRR of this project? 8.42 percent 7.48 percent 8.56 percent 8.04 percent 8.22 percent The 7 percent bonds issued by Modern Kitchens pay interest semiannually mature in eight years and have a $ 1000 face value. Currently, the bonds sell for $ 1,032. What is the yield to maturity? 7.20 percent