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Math Help - internal rate of return

  1. #1
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    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/A-B)*b-a
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  2. #2
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    Are you sure it's not 10.53?
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  3. #3
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    i asked about the rates, how to decide two rates so they can be put into the formula to get the answer.
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  4. #4
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    Let's see, you have a, b, A, and B. Have you definitions for those?

    You still didn't answer my question.
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