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
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