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You are considering investing in a security that will pay you $80 in interest at the end of each of the next 10 years. If this security is currently selling for $588.81, then the IRR for investing in this security is closest to:

User Leotrubach
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1 Answer

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Answer:

the internal rate of return is 6%

Step-by-step explanation:

The computation of the irr is shown below

Given that

Initial investment = $588.81

And yearly cash flows for the next 10 years is $80

Now for determining the internal rate of return we have to apply the formula

= IRR()

After applying the internal rate of return formula, the internal rate of return is 6%

Hence, the internal rate of return is 6%

You are considering investing in a security that will pay you $80 in interest at the-example-1
User Justrhysism
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