What are yield curves, what do they mean, and what is a normal (positive) yield curve and what is an inverted yield curve? What might an inverted yield curve mean?
Suppose you invest $3,500 today and receive $10,000 in five years.
a. What is the internal rate of return? (IRR) of this? opportunity?
b. Suppose another investment opportunity also requires $3,500 ?upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first? one, what is the amount you will receive each? year?
(Round to two decimal? places.)
This is all the information provided for this questions.