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1. The Chicago Sun-Times announced that Dean Foods will buy Purity Diaries, which is based in Nashville, Tennessee. Dean Foods has an option of
1. The Chicago Sun-Times announced that Dean Foods will buy Purity Diaries, which is based in Nashville, Tennessee. Dean Foods has an option of selling $5,000,000 in corporate bonds with a 5 % interest rate payable over the next 10 years. What is the total interest Dean Foods will pay over 10 years and what will be the maturity value? 2. Michelle Sanchez borrowed $25,000 to pay for her child's education at Hofstra University. Michelle must repay the loan at the end of 11 months in one payment with 9 % interest. How much interest must Michelle pay? What is the maturity value?
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