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A corporation intends to attract $13 million in debt capital for expansion purposes. It is offering bonds at a discount price of $8000 for a
A corporation intends to attract $13 million in debt capital for expansion purposes. It is offering bonds at a discount price of $8000 for a 3% $10000 bond that matures in 5 years with a dividend payable Monthly. Find 1) effective IRR per Month; 2) nominal IRR; 3) effective interest rates of the bond per year? If the inflation rate=0.02, find 4) effective IRR per year modified for inflation? 0.0453, 0.0906, 0.0458, 0.0615 X X X 0.0254, 0.3047, 0.0256, 0.0462 0.0254, 0.3047, 0.0256, 0.0462 X 0.0201, 0.0805, 0.02028, 0.04069 X 0.0176, 0.07054, 0.01775, 0.0381
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