entries on the income statement . Part Two 1. Bond Valuation IBM 8 40 FA V = ?, F = $1,000, CR (coupon rate) = 8%, m = 2 (semiannual), and i (discount rate) - 10% (rr) P= PV (CF) = PV (Int; F) - PV (ann) + PV (Is) - PMT (PVIFA)+F (PVIF) VALUE = Price => solve for the price you are willing to pay with a 10% required return. 2. Internal Rate of Return IBM 10s 30 JJ $1,297.55 INT (PVIFA) + F (PVIF) = $1,152.47 = INT (PVIFA) + Face (PVIF) wherein err = irr to make the equation true 2n err: $1,297.55 = (INT/2) [(1-((1/(1+ irr/2))))/(irr/2)] + F ((1+ir/2))) Using the price as $1,297.55 =V, calculate the Internal Rate of Return for the investment 2n . entries on the income statement . Part Two 1. Bond Valuation IBM 8 40 FA V = ?, F = $1,000, CR (coupon rate) = 8%, m = 2 (semiannual), and i (discount rate) - 10% (rr) P= PV (CF) = PV (Int; F) - PV (ann) + PV (Is) - PMT (PVIFA)+F (PVIF) VALUE = Price => solve for the price you are willing to pay with a 10% required return. 2. Internal Rate of Return IBM 10s 30 JJ $1,297.55 INT (PVIFA) + F (PVIF) = $1,152.47 = INT (PVIFA) + Face (PVIF) wherein err = irr to make the equation true 2n err: $1,297.55 = (INT/2) [(1-((1/(1+ irr/2))))/(irr/2)] + F ((1+ir/2))) Using the price as $1,297.55 =V, calculate the Internal Rate of Return for the investment 2n