You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 7%. If the bond initially costs $5000, what is the payment every year?
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You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 7%. If the bond initially costs $5000, what is the payment every year?
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- You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 8%. If the bond initially costs 4000$, what is the payment every year?You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 10%. If the bond initially costs $4,000, what is the payment every year? The payment at the end of each year is $. (Round to the nearest dollar.)You are thinking about buying a savings bond. The bond costs $42 today and will mature in 13 years with a value of $84. What annual interest rate will the bond earn? The bond will earn an annual rate of %. (Round to two decimal places.)
- If you are considering the purchase of a bond that pays $850 per year forever, and the rate of interest you want to earn is 11% per year, how much money should you pay for the bond?Suppose that savings and other investments will pay you 4% interest. A bond promises to pay you and your descendants $200 every year forever, starting next year. What is the most you would be willing to pay for this bond now?Suppose that if you purchase a US Treasury bond, it will pay you a one-time payment of $5000 in 10 years from now. What interest rate would you earn if you bought this bond for $3000?
- You are thinking about buying a savings bond. The bond costs $50 today and will mature in 9 years with a value of $100. What annual interest rate will the bond earn? The bond will earn an annual rate of _____%. (Round to two decimal places.)You are thinking about buying a savings bond. The bond costs $70 today and will mature in 10 years with a value of $155. What annual interest rate will the bond earn? The bond will earn (Round to two decimal places.)You are considering a savings bond that will pay $100 in 10 years. If the interest rate is 2%, what should you pay today for the bond?
- You are thinking about buying a savings bond. The bond costs $130 today and will mature in 10 years with a value of $260. What annual interest rate will the bond earn? The bond will earn 0.25%. (Round to two decimal places.) Cou are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today? 15. If you deposit R15,000 per year for 9 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 9 years? 16. You plInterest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the bank today, and then withdraw $5000 at the end of each year. What is the balance in your account immediately after the second withdrawal?