5. A bond pays $10 000 per year for the next 10 years. The bond costs $90 000 now. Inflation is expected to be 5 percent over the next 10 years.
Q5 ANSWER:
a) What is the current dollar internal rate of return? (5 points)
PW = …………… + ……………(………………….)
Interest rate PW
b) What is the real internal rate of return? (5 points)
The real internal rate of return:………..………………………= ………………
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Expert's answer
2020-05-20T16:18:35-0400
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