What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from
1 answer:
You might be interested in
Answer:
value of the bond = $2,033.33
Explanation:
We know,
Value of the bond,
Here,
Face value of par value, FV = $2,000
Coupon payment, I = Face value or Par value × coupon rate
Coupon payment, I = $2,000 × 6.04%
Coupon payment, I = $128
yield to maturity, i = 6.1% = 0.061
number of years, n = 15
Therefore, putting the value in the formula, we can get,
or,
or,
or,
or, $711.9738 + 1,321.3635
Therefore, value of the bond = $2,033.33