Question
Purchased a bond issued by the municipality of Yellow Brick County for $972 and received annual coupon payments of $39 for three years then sold
Purchased a bond issued by the municipality of Yellow Brick County for $972 and received annual coupon payments of $39 for three years then sold the bond for $998 at the end of year 3.
Determine the IRR of this investment.
Describe two risks associated with this type of investment.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To determine the internal rate of return IRR for this investment you need to find the discount rate that equates the present value of the investments ...
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Step: 2
Step: 3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
