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