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An investor purchases a bond for $920. The bond pays $30 a year for three years and then matures (it is redeemed for $1,000). What
An investor purchases a bond for $920. The bond pays $30 a year for three years and then matures (it is redeemed for $1,000). What is the internal rate of return on that investment? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number.
The internal rate of return on a bond is
%.
This return can be also called as
yield to maturity
.
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