# This question will require you to use Excel’s Rate function.You can use the IRR function, but in case of an Annuity with a large number of periods,…

This question will require you to use Excel’s Rate function.You can use the IRR function, but in case of an Annuity with a large number of periods, it can become cumbersome.

A firm purchases Treasury bonds for \$250,000. The Face Value of the bonds are \$300,000. It receives yearly coupons of \$12,000 for 8 years. At the end of 8 years the firm receives the Face Value of \$300,000 plus the coupon payment for the 8th year, and then the bonds are extinguished.

What is the IRR from the investment in the bonds?

Here is an example of the format of Excel’s RATE function:

=RATE(3,10,-100,150,0,0.1)

3 is the number of periods, 10 the periodic payments, -100 the time 0 cash flow, and 150 the additional cash flow on the last period.

The 0, is format saying the payments occur at the end of every period, and 0.10 is the initial guess for the return.

Express your answer as a percentage; for example, the answer 3.18% should be entered as 3.18 without the % sign.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.