Question
1 Sarah's cousin has sent her a $19,000 bond, which pays annual interest of $1,520. The bond has two years left until redemption. Adriana wants
1 Sarah's cousin has sent her a $19,000 bond, which pays annual interest of $1,520. The bond has two years left until redemption. Adriana wants to cash in the bond to buy a truck. The current interest rate is 5 percent. Ignoring brokerage and other costs, approximately how much will Sarah get for the bond? NO COMMAS IN ANSWER
(HINT: Need to calc the returns, find the difference, and then one step)
($Answer)
2 Sarah's cousin has sent her a $22,000 bond, which pays annual interest of $1,760. The bond has four years left until redemption. Adriana wants to cash in the bond to buy a truck. The current interest rate is 5 percent. Ignoring brokerage and other costs, approximately how much will Sarah get for the bond? NO COMMAS IN ANSWER
(HINT: Need to calc the returns, find the difference, and then one step)
($Answer)
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Environmental And Natural Resource Economics International Edition
Authors: Thomas H Tietenberg, Lynne Lewis
10th Edition
1292060794, 9781292060798
