5. Imagine you buy a bond, priced at $1,000. This bond pays $50 in interest every year and in the fifth year it pays the $50 in interest plus the return of the $1,000 principle. The cashflows for the 5 years are given as follows: $1,000 Initial Investment (Co) $50 Year 1 $50 Year 2 $50 Year 3 $50 Year 4 $1,050 Year 5 Using 8% for discounting, what is the net present value (NPV) of this investment? Find the internal rate of return (IRR). If you suddenly decide you are ok with a 4% return, do you make the initial investment? At what interest rate (be specific!) are you indifferent about making the initial investment