User Account

All Pages

What is the IRR of this investment

Assignment Help Accounting Basics
Reference no: EM133025860

Question - You wish to know the internal rate of return (IRR) of investing in a bond. This bond is a ten-year, zero-coupon bond with a YTM of 4.5% (yearly) and a face value of $1000. You plan to buy this bond when it is initially traded and sell it five years later. Assuming the YTM does not change in this four year period, what is the IRR of this investment?

Reference no: EM133025860

Questions Cloud

Find the accumulated value : The payments received are immediately deposited in a fund earning an effective annual interest rate of 3%. Find the accumulated value after the 30 years
Change management and organizational development process : A new response taken by healthcare human resources organizations is to have a person lead the change management and organizational development process.
Compute approximate internal rate of return of each project : -Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?
Explain the importance of the job analysis process : 1. How is the increasingly mobile workforce changing how, when, where, and what work is done? What opportunities and challenges face managers and mobile workers
What is the IRR of this investment : You wish to know the internal rate of return (IRR) of investing in a bond. Assuming the YTM does not change in this four year period, what is the IRR
What is the true meaning of personal capital : 1. What is the true meaning of personal capital as it relates to emotional intelligence?
Complete the statement of sources : Question - Complete the statement of sources and uses of cash from the following entries: Additions to inventory 270 and Depreciation 240
Strategic mindset of organizational executives : What conflict between the strategic mindset of organizational executives and the tactical mindset of trainers can interfere with aligning training to organizati
What is included in the entry to record the declaration : The board of directors declares a 10?% stock dividend when the market price of the stock is $19 a share. What is included in the entry to record the declaration

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd