Question: 2.) Internal Rate of Return Nominal Value $ 11,000,000 N= 4 year I= 13% N.A.S. Bond Emission Date: 10/15/2021 ---------------------------------- Buy on: 3/15/24 New Price:
| 2.) Internal Rate of Return | |||
| Nominal Value | $ 11,000,000 | ||
| N= | 4 year | ||
| I= | 13% N.A.S. | ||
| Bond Emission Date: | 10/15/2021 | ||
| ---------------------------------- | |||
| Buy on: | 3/15/24 | ||
| New Price: | $10,800,000 | ||
| What is the new IIR? | xxx% EA | ||
| 3.) Net Present Value | |||
| PAR VALUE | $ 3,000,000 | ||
| N= | 2 years | ||
| COUPON RATE | 8% N.A.Q. | ||
| Bond Emission Date: | 6/10/2020 | ||
| ---------------------------------- | |||
| Buy on: | 7/10/2021 | ||
| Opportunity Rate | 7% EA | ||
| What is the new NPV? | $$$ | ||
| 4.) Net Present Value | |||
| PAR VALUE | $ 6,000,000 | ||
| N= | 3 years | ||
| COUPON RATE | 10% N.A.S. | ||
| Bond Emission Date: | 6/10/2019 | ||
| ---------------------------------- | |||
| Buy on: | 1/10/2021 | ||
| Opportunity Rate | 9% EA | ||
| What is the new NPV? | $$$ | ||
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
