A debt obligation offers the following payments: Years from Now Cash Flow to Investor 1...........$2,000 2...........$2,000 3...........$2,500
Question:
Years from Now
Cash Flow to Investor
1...........$2,000
2...........$2,000
3...........$2,500
4...........$4,000
Suppose that the price of this debt obligation is $7,704.What is the yield or internal rate of return offered by this debt obligation? Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
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The yield on any investment is the interest rate that will make the present value of the cash flows from the investment equal to the price or cost of ...View the full answer
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