A bond pays s10 000 per year for the next ten years the


A bond pays S10 000 per year for the next ten years. The bond costs S90 000 now. Inflation is expected to be 5% over the next 10 years.

(a) What is the actual dollar internal rate of return?

(b) What is the real internal rate of return?

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Business Management: A bond pays s10 000 per year for the next ten years the
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