e 6 percent over the next 10 years. Answer parts (a) and (b). a. What is the current dollar internal rate of return? Use linear interpolation with x1=1.95% and x2=2.00% to find your answer. The current dollar internal rate of return is enter your response here percent. (Type an integer or decimal rounded to two decimal places as needed.) b.
e 6 percent over the next 10 years. Answer parts (a) and (b). a. What is the current dollar internal rate of return? Use linear interpolation with x1=1.95% and x2=2.00% to find your answer. The current dollar internal rate of return is enter your response here percent. (Type an integer or decimal rounded to two decimal places as needed.) b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A bond pays $12,000 per year for the next 10 years. The bond costs $108,000 now. Inflation is expected to be 6 percent over the next 10 years. Answer parts (a) and (b).
a. What is the current dollar internal rate of return ? Use linear interpolation with x1=1.95% and x2=2.00% to find your answer. The current dollar internal rate of return is
enter your response here
percent. (Type an integer or decimal rounded to two decimal places as needed.)
b. What is the real internal rate of return? The real internal rate of return is
enter your response here percent. (Type an integer or decimal rounded to two decimal places as needed.)
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