Question

The IRR of a bond is the same as its _____. Choose all that apply. The IRR of a bond is the same as its _____. Choose all that apply. expected return required return yield to maturity cash yield coupon rate

Answer 1

IRR is an acronym that stands for the Internal Rate of Return. IRR is used in calculating how profitable future investments will be. The IRR of a bond is the same as its;

• Yield to maturity

• Expected return

When people make investments, the internal rate of return is calculated to know what their expected return will be. T

he net present value is set at zero and then the discount rate will be calculated. The IRR is used to ascertain the future potentials of capital budgets.

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