Suppose that today, you paid $1,000 for the bond described in Problem 8 of Chapter 8, “The net present value functions: NPV and XNPV.” What would be the bond’s IRR? A bond’s IRR is often called the yield of the bond.

Data from in problem 8

Consider a project having the following cash flows. Try to find the IRR of this project without simply guessing. What problem arises? What is the IRR of this project? Does the project have a unique IRR?

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Year 1 -$70,000 Year 2 $12,000 Year 3 $15,000