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Assuming Mirtha Purchased the Risky Bond Above for $105,000 and the Market

Question 12

Multiple Choice

Assuming Mirtha purchased the risky bond above for $105,000 and the market rate is 6%, which is false?


A) Net present value is $17,080
B) Payback occurs at the end of year 10
C) IRR is 8.25%
D) Present value of the cash flows is $122,080
E) None of the above

Correct Answer:

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