Rebecca plans to invest in both stocks and bonds with $10,000. She will use $4,400 to buy stocks which are priced at $400 per share. The stock pays a dividend per quarter at 10% of the stock price. Rebecca then plans to sell the stock right after the 8th dividend payment when the stock price is expected to be 1.5 times of the original price; she will use the left $5,600 to buy two-year bonds, which are priced at $560 with a face value of $640 and an annual coupon rate of 10%. The coupons are also paid quarterly. Then (1) what are the cash flow of the stocks represented by timelines? 6 points (2) what are the cash flows of the bonds represented by timelines? 8 points (3) what are the combined cash flows of the stocks and bonds, which list all the cash inflows and outflows Rebecca has from the investment in stocks and bonds? 4 points (4) what is the IRR of Rebecca's investment? 6 points. Please round your answers to the nearest .01% for the IRR.

Answer rating: 100% (QA)

1 Cash flow of the stocks represented by timelines Rebecca is buying 4400 worth of stocks at 400 per ... View the full answer