The internal rate of return is analogous to the yield on a bond, because both are rates that equate inflows with outflows on a present value basis.

Name: The internal rate of return is analogous to the yield on a bond, because both are rates that equate inflows with outflows on a present value basis.
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The statement is true. Both the internal rate of return and the yield on a bond are rates that balance the present value of inflows and outflows.

The Internal Rate of Return Is Analogous to the Yield