[jane123]

ok as long as i dont lose marks for choosing different % rates, than someone else would. then its fine. just wanted to know this.

thanks a lot

[jane123]

@vipin70 said:
to find IRR, we use the formula,
for a 8% bond, NPV will be zero for DF at 8%.
so we take a value lower than 8 and another value higher than 8.
say, 5 and 15. find NPV for each case(5 and 15). then put the value in IRR.

i though so as well but. as i said the first e.g was 8% bond and they used discount rate 10% and 16% to get npv. none are lower than 8.

and the second bond was 5% discount rate was 5% and 15%. none are lower.

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