A firm purchases treasury bonds for 250000 the face value, Ask an Expert

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A firm purchases Treasury bonds for $250,000. The Face Value of the bonds are $300,000. It receives yearly coupons of $12,000 for 8 years. At the end of 8 years the firm receives the Face Value of $300,000 plus the coupon payment for the 8th year, and then the bonds are extinguished.

What is the IRR from the investment in the bonds?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92832060

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