Please help me with the steps for figuring out that IRR is 4%

i View an Example X Question Help Suppose you purchase a 30-year Treasury bond with a 4% annual coupon, initially trading at par. In 10 years' time, the bond's yield to maturity has risen to 6% (EAR). (Assume $100 face value bond.) a. If you sell the bond now, what internal rate of return will you have earned on your investment in the bond? b. If instead you hold the bond to maturity, what internal rate of return will you earn on your initial investment in the bond? c. Is comparing the IRRs in (a) versus (b) a useful way to evaluate the decision to sell the bond? Explain. So the IRR is 1.89% We can also compute this result using a spreadsheet: NPER RATE PV PMT FV Excel Formula Given 10 100 - 4 - 77.06 Solve for RATE 1.89% =RATE(10, - 4,100, - 77.06) b. If instead you hold the bond to maturity, what internal rate of return will you earn on your initial investment in the bond? The IRR of holding the bond to maturity is equal to the yield when you purchased the bond so IRR = y = 4%. c. Is comparing the IRRs in (a) versus (b) a useful way to evaluate the decision to sell the bond? Explain. We can't simply compare IRR's. By not selling the bond for its current price of $77.06, we will earn the current market return of 6% on that amount going forward. Question is complete. All parts showing Close