A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for $7,000, what is the annual actual investment rate?   a.  IRR = 7.15%%   b.  IRR = 5.10%   c.  IRR = 3.58%   d.  IRR = 6.23%

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for $7,000, what is the annual actual investment rate?

 

a. 

IRR = 7.15%%

 

b. 

IRR = 5.10%

 

c. 

IRR = 3.58%

 

d. 

IRR = 6.23%

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