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
you have just been hired as a financial managher of a company that moulds bricks.the firm does not have a proper corporate governance structure.you ar to advice board of directors

a firm wishes to maintain an internal growth rate of 6.5% and the dividend payout ratio of 25%. The current profit margin is 6%, and the firm uses no external financing sources. Wh


A minimum level of sales-oriented activities that must be meet up by a salesperson in the given time period. An activity quota may need a salesperson to create a certain number of

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

cost of equity capital

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

The First Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of

GeKay Inc. currently (January 1) has a net income of $10,000,000 which is expected to grow indefinitely(perpetuity) at 10% per annum.   The firm is financed at a debt-to -value ra

a) Describe the different types of exchange rate risks, using appropriate numerical examples. b) ‘Transaction exposure will equally be managed externally by a forward hedge or