Essay About Southeast Corporation And Irr Of Southeast Corp

Southeast Corporation & Auto Star
Southeast Corporation & Auto Star    Step 2: IRR of Southeast Corp’s Bond[pic 1]YearCash FlowYield to Maturity0 (60,000,000.00) 1 7,080,000.00  2 7,080,000.00  3 7,080,000.00  4 7,080,000.00  5 7,080,000.00  6 7,080,000.00  7 7,080,000.00  8 7,080,000.00  9 7,080,000.00  10 7,080,000.00  11 7,080,000.00  12 7,080,000.00  13 7,080,000.00  14 7,080,000.00  15 7,080,000.00  16 7,080,000.00  17 7,080,000.00  18 7,080,000.00  19 7,080,000.00  20 17,080,000.00  21 15,900,000.00  22 14,720,000.00  23 13,540,000.00  24 12,360,000.00  25 11,180,000.00    11.800%[pic 2]YearCash FlowDiscount factorPresent Value of Future Cash FlowsTime-weighted Duration of Cash Flows1 7,080,000.00 1.1180 6,332,737.03 0.10552 7,080,000.00 1.2499 5,664,344.39 0.18883 7,080,000.00 1.3974 5,066,497.67 0.25334 7,080,000.00 1.5623 4,531,751.04 0.30215 7,080,000.00 1.7467 4,053,444.58 0.33786 7,080,000.00 1.9528 3,625,621.27 0.36267 7,080,000.00 2.1832 3,242,952.84 0.37838 7,080,000.00 2.4408 2,900,673.38 0.38689 7,080,000.00 2.7288 2,594,520.02 0.389210 7,080,000.00 3.0508 2,320,679.80 0.386811 7,080,000.00 3.4108 2,075,742.22 0.380612 7,080,000.00 3.8133 1,856,656.73 0.371313 7,080,000.00 4.2633 1,660,694.75 0.359814 7,080,000.00 4.7663 1,485,415.69 0.346615 7,080,000.00 5.3288 1,328,636.58 0.332216 7,080,000.00 5.9576 1,188,404.81 0.316917 7,080,000.00 6.6606 1,062,973.89 0.301218 7,080,000.00 7.4465 950,781.66 0.285219 7,080,000.00 8.3252 850,430.82 0.269320 17,080,000.00 9.3076 1,835,066.45 0.611721 15,900,000.00 10.4059 1,527,985.56 0.534822 14,720,000.00 11.6337 1,265,284.34 0.463923 13,540,000.00 13.0065 1,041,015.47 0.399124 12,360,000.00 14.5413 849,992.68 0.340025 11,180,000.00 16.2572 687,696.34 0.2865   600000008.6903        Modified Duration=8.6903/(1+11.8%)=7.8Year CF IRR0 (101,562,500) 1 12,000,000  2 12,000,000  3 12,000,000  4 12,000,000  5 12,000,000  6 12,000,000  7 12,000,000  8 12,000,000  9 12,000,000  10 12,000,000  11 12,000,000  12 12,000,000  13 12,000,000  14 12,000,000  15 12,000,000  16 12,000,000  17 12,000,000  18 12,000,000  19 12,000,000  20 12,000,000  21 12,000,000  22 12,000,000  23 12,000,000  24 12,000,000  25 12,000,000  26 12,000,000  27 12,000,000  28 12,000,000  29 12,000,000  30 112,000,000    11.81%YearCF 0 (98,473,500) 112000000 212000000 312000000 412000000 512000000 612000000 712000000 812000000 912000000 1012000000 1112000000 1212000000 1312000000 1412000000 1512000000 1612000000 1712000000 1812000000 1912000000 2012000000 2112000000 2212000000 2312000000 24112000000   12.20%Step 4: CTD (IRR) at Maturity                                                                        Step 5: CTD Treasury Bond Yield (IRR) at its call date