Question
Reading the following sentences(c,d,e), please mark O for the right sentence, and for the wrong one. In case of the wrong sentence, correct the sentence.
Reading the following sentences(c,d,e), please mark O for the right sentence, and for the wrong one. In case of the wrong sentence, correct the sentence.
Please give 'detailed' solution
c)The following three conditions will always guarantee one unique real value of the internal rate of return; 1.The cash flow starts from negative flow. 2.There's only one sign change in the series of the cash flow. 3.Summation of the positive cash flows is greater than summation of the negative cash flows
d) For no-interperiod-interest policy with PP>CP, deposits are regarded as made at the end of the compounding period, while withdrawals are regarded as made at the beginning.
e) Samsung just released $1,000 bond that matures in 5 years. The bond pays dividends semiannually at a rate of 4% per year. You are going to buy the bond at a price of $1,050. The effective rate of return per year is computed as 4.04%.
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