Determination of internal rate of return


Question1: You buy a bond at 940 with a coupon of 8 percent. Five years later you sell it for 970. Determine internal rate of return?

Question2. You buy a 30 year zero coupon bonds when interest rates were 7 percent.  Three years later you sell it when interest rates were 8%. Determine your internal rate of return?

Question3. You buy a bond at 900 with a current yield of 8 percent. Four years later you sell it for 990. Determine internal rate of return?

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Finance Basics: Determination of internal rate of return
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