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13. You won a lottery of $15 million, payable over 30 years at $500,000 per year with the first payment to be made one year
13. You won a lottery of $15 million, payable over 30 years at $500,000 per year with the first payment to be made one year from now. What is the lottery worth if the interest rate is 11%?* a) $4.35 million b) $15 million c) $150 million O d) $5.48 million O e) None of the above 14. What is the return on a 5 percent coupon bond that has a current market value of $1,000 and expected price of $1,200 after 1 year? a) 5 percent O b) 10 percent OC) -5 percent O d) 25 percent e) None of the above
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