Purchase Solution

NPV of future cash flows

Not what you're looking for?

Ask Custom Question

If you were to derive the NPV of the future cash flows from a bond purchased at some price, at what discount rate would the NPV = zero? I don't understand this question. Can someone please help me answer this?

Purchase this Solution

Solution Summary

NPV of future cash flows are examined.

Solution Preview

NPV of future cash flows is equal to zero at discount rate = ...

Solution provided by:
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Operations Management

This quiz tests a student's knowledge about Operations Management

Motivation

This tests some key elements of major motivation theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.