An investor purchases a bond for $949 The bond pays $60 a year for three years and then matures (it is redeemed for $1,000) What is the internal rate of return on that investment In Chapter 13, what was this return called ...

The internal rate of return on a bond is an illustration of ...

An investor purchases a bond for $949. The bond pays $60 a year for three years and

Question:

An investor purchases a bond for $949. The bond pays $60 a year for three years and then matures (it is redeemed for $1,000). What is the on that investment? In Chapter 13, what was this return called?
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...