What is bella annual rate of return

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1. Bella Sandino purchased some corporate stock for $17,500. She received dividends as follows: $155 at the end of year 1, $179 at the end of year 2, $97.40 at the end of year 3, nothing at the end of year 4, and $127.33 at the end of year 5. Immediately after receiving the final dividend check, she sold the stock for $18,100, less brokerage fees of $118. What is Bella’s annual rate of return (IRR)? Round to the nearest tenth of a percent.

2. Five years ago, Natalia Sandino bought a 30-year 6.5%, $1,000 bond. The bond pays interest annually. She wants to sell the bond after receiving the fifth annual dividend. Similar bonds are being issued that pay 4%. What is Natalia’s bond worth today? Round to the nearest cent.

Reference no: EM132048138

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