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1. 2. If you invest $37000 into an account that pays 4% interest, compounded continuously, how much will be in the account at the end
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If you invest $37000 into an account that pays 4% interest, compounded continuously, how much will be in the account at the end of 5 years if you make no additional deposits or withdrawals? Present your answer as a whole number to two decimals (including the $ symbol), e.g. $12345.67 (25% marks will be deducted if the $ symbol is not provided). Answer: Assume a bond has a face value of $1,000 and matures in 5 years. The bonds pay 2% coupon interest semi-annually. Suppose you buy the bond for $950 and hold it to maturity. What is your return on this bond? Present your answer in percentage to 3 decimal places (including the % symbol), e.g. 12.345% (25% marks will be deducted if the % symbol is not provided)Step by Step Solution
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