Return to Problem 18. Instead of a 5% preferred rate, assume there is an 8% preferred rate
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Return to Problem 18. Instead of a 5% preferred rate, assume there is an 8% preferred rate with a 100% catch-up.
a. Recalculate the yearly cash flows.
b. What is the IRR to the endowment, net of fees?
c. How do you explain the difference in IRR from the previous problem?
P-68
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Related Book For
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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