A bond is a common investment opportunity

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A bond is a common investment opportunity. Suppose you have the opportunity to buy a bond with a par value of $1,000 and semi-annual coupon payments of $40 that matures in 10 years. Supposing this bond is available for $960, what is the payback period? What is the IRR? What is the NPV, given a discount rate of 4%?

Compare the yield-to-maturity to the IRR.

Reference no: EM131503705

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