PS 8 - NPV,IRR,ERR,BC Criterions 2

PS 8 - NPV,IRR,ERR,BC Criterions 2 - IE 150 Problem Set 8...

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IE 150 Problem Set 8 NPV, IRR, ERR, Payback 2 Instructions:  Write/Type/Print your answers on yellow pad or bond paper (NO A4’s). Use a different sheet per  problem.  Use phrases  to describe what you are doing. Do not present it as just a series of equations and  numbers.  Label each step. Ex: “Step 1: Set-up the Total Revenue Equation”, “Step 4: Solve for the NPV”.  Box the final answers.  Use clear formatting: Indent at each step. Show your answers in just 1 column. (The problem set  will be read from top to bottom, and not top bottom diagonal right bottom.) Problem 1:  A 20 year bond with a face value of $5,000 is offered for sale at $3,800. The nominal rate of interest on  the bond is 7%, paid semi-annually. This bond is now 8 years old (wherein the owner has already  received 16 payments). If the bond is purchased for $3,800 what effective 
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This note was uploaded on 10/05/2011 for the course IE 150 taught by Professor J3patino during the Spring '11 term at University of the Philippines Diliman.

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PS 8 - NPV,IRR,ERR,BC Criterions 2 - IE 150 Problem Set 8...

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