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titleExample of calculating an EIR

The following example explains an EIR calculation (regardless of the general challenges of EIR calculations and possible effects possible effects occurring from changes in deal data).

The following deal data are considered:

Hence, the following cash flows are relevant:

Using the EIR formula, the following equation needs to be considered:

Solving the equation leads to an approximated value for EIR = 6.45264%.

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