A bond matures in 10 years. The coupon rate is 11%, paid annually. The par value...

  

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A bond matures in 10 years. The coupon rate is 11%, paid annually. The par value is $100. Since issuance, interest rates have dropped and the market rate of interest for this type of bond is now 7%. What is the price of the bond today? For this problem, use Excel's IRR function. (You can look under the formula menu to learn how to use it.) What is the internal rate of return of the following cash flow stream? Show answer to two decimal places. year -$50 1322225 P012345 A bond matures in 10 years. The coupon rate is 11%, paid annually. The par value is $100. Since issuance, interest rates have dropped and the market rate of interest for this type of bond is now 7%. What is the price of the bond today? For this problem, use Excel's IRR function. (You can look under the formula menu to learn how to use it.) What is the internal rate of return of the following cash flow stream? Show answer to two decimal places. year -$50 1322225 P012345

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Answer To find the internal rate of return IRR of the given cash flow stream in Excel you ... View the full answer