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1.) Suppose that interest rates are 5%.If I put $100in the bank,howmuch do I have at the end of one year?At the end of two
1.) Suppose that interest rates are 5%.If I put $100in the bank,howmuch do I have at the end of one year?At the end of two years?
Please show all work.
2.) Suppose that a perpetuity has a coupon payment of $4000annually.What is the yield to maturity when its price is$10,000?What is the yield to maturity when the price is $20,000?
Please show all work.
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