1. Find the IRR of an investment having an initial cash outflow of $213,000. The cash inflows during the first, second, third and fourth years are expected to be $65,200, $96,000, $73,100 and $55,400 respectively.
2. A $10 000, 7.2% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.
3. Jane purchased a bond for $1000 with a coupon rate of 7.2% on November 10, 2000 that matured in eight years. She sold it on January 26, 2005. What was the market value on that day if the market rate was 7% compounded semiannually?