Jerry has an opportunity to buy a bond with a face value of $10,000 and a coupon rate of 14 ​percent, payable semiannually.   a. If the bond matures in five years and Jerry can currently buy one for ​$4000​, what is his IRR for this​ investment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Jerry has an opportunity to buy a bond with a face value of $10,000 and a coupon rate of 14 ​percent, payable semiannually.
 
a. If the bond matures in five years and Jerry can currently buy one for ​$4000​, what is his IRR for this​ investment?
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