In calculating yield to maturity using IRR, why the redemption value we dont take $110 ($8 coupon + $100 par +2% premium) and take $102 instead ?
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Toltuck Co (Mar/June 2017)
3y ago#1The answer does take 110 !!!
They have take $8 per year for years 1 to 3 and then $102 in year 3.
That is exactly the same as taking $8 per year in years 1 and 2, and then $110 in year 3.
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