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INTERNAL RATE OF RETURN 1 Bond Emission Date: 3-Mar-23 Nominal Value $ 100,000 N= 1 year I= 30% N.A.Quarterly Buy on: 3-Aug-23 New Price: $99,000
| INTERNAL RATE OF RETURN | ||
|
1 |
Bond Emission Date: |
3-Mar-23 |
| Nominal Value | $ 100,000 | |
| N= | 1 year | |
| I= | 30% N.A.Quarterly | |
| Buy on: | 3-Aug-23 | |
| New Price: | $99,000 | |
| What is the new IIR? | xxx% EA | |
| 2 | CD Emission Date: | 9-Sep-20 |
| Vr Nominal: | $ 1,500,000 | |
| N= | 2 years | |
| I= | 22% N.A. Semi-annual | |
| Buy on: | 9-Aug-21 | |
| New Price: | $1.505.500 | |
| What is the new IIR? | xxx %EA | |
| 3 | T-Bill Emission Date | 15-May-22 |
| Nominal: | $ 102,000 | |
| N= | 3 years | |
| I= | 15% N.A. per year | |
| Buy on: | 15-Jun-23 | |
| New Price: | $ 101,500 | |
| What is the new IIR? | xxx % EA | |
| Net Present Value | |
| 1 | |
| PAR VALUE | $ 10,000,000 |
| N= | 2 years |
| COUPON RATE | 15% N.A. Semi-annual |
| Bond Emission Date: | Aug-23-24 |
| Buy on: | Apr-23-25 |
| Opportunity Rate | 14% EA |
| What is the new NPV? | $$$ |
| 2 | |
| PAR VALUE | $ 5,000,000 |
| N= | 3 years |
| COPUPON RATE | 19% N.A.Q |
| CD Emission Date: | Sep-18-2020 |
| Buy on: | Oct -18- 2022 |
| Opportunity Rate | 20% EA |
| What is the new NPV? | $$$ |
| 3 | |
| PAR VALUE | $ 3,250,000 |
| N= | 5 years |
| COUPON RATE | 25% N.A. semi-annual |
| T-Bill Emission Date | Nov-7-2022 |
| Buy on: | June-7-2024 |
| Opportunity Rate | 24% EA |
| What is the new NPV? | $$$ |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
