You are considering investing in a security that will pay you $80 in interest at the end of each of the next 10 years. If this security is currently selling for $588.81, then the IRR for investing in this security is closest to:

A) 6.0%
B) 7.0%
C) 6.5%
D) 5.0%

A
Explanation: A) PV = -588.81
PMT = 80
N = 10
FV = 0
Compute I = 5.99989

Business

You might also like to view...

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

What will be an ideal response?

Business

Which of the following journal entries is used to record fixed overhead costs allocated?

A) Fixed Overhead Allocated Work-in-Process Control B) Work-in-Process Control Fixed Overhead Allocated C) Fixed Overhead Control Work-in-Process Control D) Fixed Overhead Allocated Fixed Overhead Control

Business