What is the internal rate of return on his investment

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Reference no: EM131976356

1. Sharda bought a $1000 corporate bond this year at a discount for $975. The bond pays $80 of interest at the end of each of the next 5 years, at which time it will mature at its face value. If her required rate of return is 8.25%, what is the net present value of the investment?

a. $15.08

b. $13.93

c. -$12.80

d. -$35.23

2. Donovan bought a painting 5 years ago for $10,000. Two years ago, he spent $1500 to have it restored. This year, he sold it for $18,000. What is the internal rate of return on his investment?

a. 12.21%

b. 10.10%

c. 11.23%

d. 9.65%

Reference no: EM131976356

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