User Account

All Pages

What is the irr of this investment

Assignment Help Accounting Basics
Reference no: EM133043820

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?

A) 7.00%

B) 5%

C) 4.5%

D) 3.50%

E) 0.5%

Reference no: EM133043820

Questions Cloud

Describe technological considerations for collecting data : What metrics would be important to track with respect to diversity and inclusion for HRM functions? Describe technological considerations for collecting data fo
How much is the direct labor time-efficiency variance : Material 14,200 feet used; 14,700 feet purchased @ $3.70 per foot. How much is the direct labor time/efficiency variance
Prepare the required journal entries in good form : Tunis Incorporated has a March 31 year-end. Prepare the required journal entries in good form (with dates) for the above-listed transactions
Indicate the amount of underapplied or overapplied overhead : The estimated direct labour dollars for the year were $130,000. Indicate the amount of underapplied or overapplied overhead
What is the irr of this investment : This bond is a ten-year, zero-coupon bond with a YTM of 4.5% (yearly) and a face value of $1000. What is the IRR of this investment
Determine the number of recorders the manager should order : The manager has determined that if 85% of customer demand for recorders can be met, Determine the number of recorders the manager should order
In what tax year will the statute of limitations expire : ary has never filed a 2018 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will statute expire
MN7400 Academic Skills and Practice Assignment : MN7400 Academic Skills and Practice Assignment Help and Solution, University of Leicester - Assessment Writing Service
Calculate the growth rates in sales and receivables : Playworld, Inc. sells playground equipment to schools and municipalities. Calculate the growth rates in sales and receivables during 2009 and 2010

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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