Compute the internal rate of return, Cost Accounting

ABC bond is a 20-year bond with face value $1000. The coupon payment is $25 per 6 months. The semi-annual yield is 4%. Use the PV function in Excel (or equivalent) to Önd the price of the bond. Note that the entry FV in the Excel PV function is the maturity, or face value of the bond.

b. Use the inputs as in the first part, but let semi-annual yields range from 1% to 6%. Plot the prices of the bonds.

c. Compute the internal rate of return (IRR) on a 20-year bond with face value $1000, coupon payments of $25 per six months and a current price of $975. Use the IRR function in Excel (or equivalent).

d. Compute the duration of the bond in part a).

Posted Date: 3/1/2013 1:19:53 AM | Location : United States







Related Discussions:- Compute the internal rate of return, Assignment Help, Ask Question on Compute the internal rate of return, Get Answer, Expert's Help, Compute the internal rate of return Discussions

Write discussion on Compute the internal rate of return
Your posts are moderated
Related Questions
Assume the same facts as in 1A above, except that the interest payment checks were placed on the shareholders' office on December 31, 2012. However, the shareholders are not in the

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe


Manufacturing statements and cost behavior  Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-g

Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number

HOW DOES IDLE CAPACITY EFFECT COST BEHAVIOR PATTERNS AND FACTORY OVERHEAD METHODS?

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

A co has a standard costing system. the following are avaiable for september: actual quantity of direct materials purchased and used: 20,000 pounds Standard price of direct mater

The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has a