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eared are worth less than $50, the Treasury will automatically increase the value of the bond to $50 a. Assume you purchased a $50 face
eared are worth less than $50, the Treasury will automatically increase the value of the bond to $50 a. Assume you purchased a $50 face value bond, what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? b. If you purchased a $50 face value bond and the current interest rate is 10 percent per year, how much would the bond be worth in 10 years? c. Ten years from now, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value. What rate of return will you earn over the last 10 years? a. Present value Years Future value b. Interest rate Year's c. Years answers should be a positive value a. Rate over the entire 20 years b. Future value after 10 years c. Rate over last 10 years
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