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
What are the missing amounts for the below amortization table, given the following information? -  A firm borrows $100,000 from a bank. -  The terms of the loan require the f

Typical Causes of Material Variances Price Variances a) Paying lower or higher prices than planned. b) Losing or gaining quantity discounts via buying in large

when one firm purchase other and take over its all assets.balance sheet of absorbed firm shows goodwill,should we goodwill as well?



XYZ Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will have coupo

Ed Mettway was concerned about his firm's ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, estab

ADVANTAGES OF COST ACCOUNTING 1.         It helps in efficient decision making. 2.         It assists in cost drop. 3.         It is useful in obsession of selling price

The text states that four conditions are necessary for the existence of a perfectly competitive market. Discuss in your own words each one. a)   Numerous participants: Roughly

Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may