
internal rate of return
a company has issued 12% redeemable debt with 5 years to redemption. redemption is at par. the current market value of the debt is 107.59. the tax rate is 30%. wat is required return by the debt providers?
it's answers is 10.63.
but i don't know how to decide two rates to compute it? is it all judgement?
irr= a+(A/AB)*ba

Are you sure it's not 10.53?

i asked about the rates, how to decide two rates so they can be put into the formula to get the answer.

Let's see, you have a, b, A, and B. Have you definitions for those?
You still didn't answer my question.