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An investor purchased a "par bond" for $500 with the principal $500. Over n = 9 years the bond will pay 3% coupon annually. Find the IRR of the cash flow stream (also called Yield to Maturity). Note: The bond has the following cash flow stream: at time zero payment $500 is made; for 9 years, at the end of each year the coupon payment (3/100)*500 is made; also at the end of year 9 the principal $500 is paid in addition to the last coupon.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92844566

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