Today Tania buys two securities on the bond market, maturing in 10 years. - The Alpha bond
Fantastic news! We've Found the answer you've been seeking!
Question:
- The Alpha bond costs $8,500 today, pays annual coupons of $100 per year (first coupon in an exact year), and has a face value of $10,000.
- The Beta bond costs $7,500 today, pays no coupons and has a face value of $10,000.
a) Represent the timeline of Tania's investment over the next ten years.
b) Calculate the NPV of Tania's investment considering an annual discount rate of 2%.
c) Calculate the IRR of Tania's investment.
Related Book For
Posted Date: