appendix b

appendix d

An investor purchases a bond for $973. The bond pays $40 a year for three years and then matures (it is redeemed for $1,000). What is the internal rate of return on that investment? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. The internal rate of return on a bond is This return can be also called as Select Interest Factors for the Present Value of One Dollar year) 1% 990 980 971 2% 980 961 942 3% 971 943 915 4% 962 925 889 5% 952 907 864 823 784 6% 943 890 840 792 747 7% 935 873 816 763 713 8% 926 857 794 735 681 9% 917 842 772 10% 909 826 751 12% 893 797 712 14% 15% 877 870 769756 675 658 .592 572 519 497 16% 18% 862 .847 743718 .641 609 552 516 476 437 20% 833 694 579 482 402 24% 806 650 524 423 341 28% 781 610 477 373 291 951 906 863 822 650 621 567 942 630 564 432 376 410 354 370 335 275 227 .178 888 871 853 .837 820 838 813 789 766 744 790 760 731 703 676 746 711 677 .645 614 705 .665 627 592 558 666 .623 582 544 508 502 540 500 463 507 452 404 361 322 467 -424 386 914 905 456 400 351 308 270 284 247 263 227 226 191 194 162 144 116 422 .139 .108 085 722 .650 388 350 287 11 12 13 896 887 879 .870 .861 804 788 773 758 743 .601 577 585 557 530 505 527 .497 469 442 442 475 444 415 388 429 397 368 340 326 290 237215 208 187 182 163 160 141 140 123 229 205 183 195 162 168 137 145 116 125 .108084 135 112 093 .078 065 .094 .076 061 049 040 066 052 040 032 025 661 642 275 239 16 17 18 252 231 853 844 836 828 820 728 714 700 686 .673 623 605 587 570 554 a 534 513 494 475 456 458 436 416 396 377 339 292 317270 296 394 371 350 331 312 218 198 .180 163 146 130 20 258 123 107 .093 071 .054 032 019 108 093 080 060 045 026 015 095 081 069 051 038021 012 .083 070 060 043 031 017 009 073 061.051 037 026 014 007 038 030 .024 016 010005002 020 015 .012 .007 004 .002 _001 25 30 780 742 610478 552 412 375 308 295 231 233 174 184 131 178 149 104 .116.092.059 075 057.033 146 099 Interest Factors for the Present Value of an Annuity of One Dollar Time Period year) 1 2 3 4 1% 2% 3% 4% 5% 6% 7% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 1970 1942 1913 1.886 1.859 1.833 1,808 1787 2941 2884 2.829 2.775 2.723 2.673 2.624 2.577 3902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 853 42134580 4.452 4.329 4.212 4.100 3.993 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.759 1.736 1.690 1647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1766 167 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 3.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.0 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5,033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2455 7652 7325 7020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4,031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7.360 7024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 N7.499 7.139 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 7.786 7.367 6.628 6,002 5.468 5.008 4.611 3.962 3.459 3,061 2.740 8,060 7606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 18 16 398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4,097 3.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15 373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778