What is the rate of return for an investor who pays
$1,054.47for a three-year bond with a 7% coupon ansd sells the bond
one yearlater for $1,037.19?

The rate of return for the investor is 4.95 %.

Step-by-step explanation:

The required rate of return can be determine with the help of IRR formula given below. To use the formula first we have to calculate NPV using one two rates that is 5% and 10%.

NPV (5%)= (-$1,054.47) +(1000*7%*0.952) + ($1,037.19*0.952)

= -0.42512

NPV (10%) = (-$1,054.47) +(1000*7%*0.909) + ($1,037.19*0.909)

=-48.03

IRR= 5% + (-0.43)/-0.43+48.03) * (10%-5%)

= 4.95 %

there are many solutions.

step-by-step explanation:

step 1: simplify both sides of the equation.

4x+6=4x^2+10x−4

step 2: subtract 4x^2+10x-4 from both sides.

4x+6−(4x^2+10x−4)=4x^2+10x−4−(4x^2+10x−4)

−4x^2−6x+10=0

step 3: factor left side of equation.

−2(2x+5)(x−1)=0

step 4: set factors equal to 0.

x=-5/2 or x=1

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step-by-step explanation: