# Question

A debt obligation offers the following payments:

Years from Now

Cash Flow to Investor

1........... $2,000

2........... $2,000

3........... $2,500

4........... $4,000

Suppose that the price of this debt obligation is $7,704.What is the yield or internal rate of return offered by this debt obligation?

Years from Now

Cash Flow to Investor

1........... $2,000

2........... $2,000

3........... $2,500

4........... $4,000

Suppose that the price of this debt obligation is $7,704.What is the yield or internal rate of return offered by this debt obligation?

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