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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?
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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?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.)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?
- 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?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.)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.)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?You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a month in a stock account and K300 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with an 8 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period?
- 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.) CYou may purchase an annuity that will pay you 300000 in income per year starting one year from now and continuing for a total 22 years, or 22 payments. Assuming an annual risk-free interest rate of 4%, what is a fair price for this annuity?