1.

What is the IRR of the following set of cash flows?

Year	Cash Flow
0	$8,868
1	3,800
2	4,400
3	5,100

rev: 09_18_2012

23.18%

22.08%

22.52%

20.98%

21.64%

2.

A bond has a market price that exceeds its face value. Which of the following features currently apply to this bond? I. discounted price II. premium price III. yield-to-maturity that exceeds the coupon rate IV. yield-to-maturity that is less than the coupon rate

I and IV only

II and IV only

I and III only

III only

II and III only