IRR, Corporate Finance

A firm issues bonds with a coupon rate of 10%, paid annually, having a par value of 1000, YTM of 8% and maturity of 10 years. What is the IRR of buying the bond today and selling it after three years if the yield to maturity on the bond is 9% after three years?
Posted Date: 2/5/2013 10:51:59 PM | Location : United States







Related Discussions:- IRR, Assignment Help, Ask Question on IRR, Get Answer, Expert's Help, IRR Discussions

Write discussion on IRR
Your posts are moderated
Related Questions
Syfy is considering investing in a project with the following details. The initial cost of investing in equipment is estimated to be Rs1,200,000. However, the project is deemed to

a)    Calculate the price of a European style call option with 6 months left to maturity assuming a risk-free rate of 3.5% and a non-dividend paying stock which can change in price

Ask question #Minimum 100 words acceptedPlease describe what you see as the financial reporting failures in the last four years time period#


A owns all of the stock of X.  The stock's basis is $100.  X has a total of current and accumulated earnings and profits of $50.  X distributes $200 cash to A "with respect to his

The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, how would Cl

Summarize the key statistics for the stock and the industry (choose 8 items you believe informative, such as P/E ratio, market capitalization, dividend yield, ROE, sales etc.tion..

Question: (a) You are given the following information on two risky assets A and B. E(X) = 25% E(Y) = 30% Var (X) = 16% Var (Y) = 49% The correlation matr

Ask questThe credit term "2/45 net 90" indicatesion #Minimum 100 words accepted#

Your firm is contemplating the purchase of a new $791,000 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will