Suppose you purchase a 20 year, $1,000 Treasury bond with a 6 annual coupon ten years ago at par Today the bond 's yield to maturity has risen to 8 (EAR) If you sell this bond now, the internal rate of return you will earn on your investment will be closest to ...

IRR is the rate of return which makes the present value of all the cash flows you will rece ...

Suppose you purchase a 20-year, $1,000 Treasury bond with a 6% annual coupon ten years ago at

Question:

Suppose you purchase a 20-year, $1,000 Treasury bond with a 6% annual ten years ago at par. Today the bond's yield to has risen to 8% (EAR). If you sell this bond now, the you will earn on your investment will be closest to:
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...