If You Sell This Bond Now,the Internal Rate of Return

question 108

Multiple Choice

If you sell this bond now,the internal rate of return you will earn on your investment will be closest to:

• A)5.0%
• B)5.6%
• C)6.0%
• D)8.0%

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Definitions:

Parent Corporation

A corporation that owns a controlling interest of another corporation, called a subsidiary corporation.

Subsidiary

A subsidiary is a company that is completely or partially owned and wholly controlled by another company, known as the parent company.

Commingled Assets

The mixing of assets or funds belonging to different owners, making it difficult to distinguish one's property from another's.

Income Tax

A tax imposed by the government on the income generated by businesses and individuals within their jurisdiction.