Question
How does a country finance its long-term debt? One way is through savings bonds, or SBs for short, which are long-term financial instruments with 10-year
How does a country finance its long-term debt? One way is through savings bonds, or SBs for short, which are long-term financial instruments with 10-year maturities issued only by the federal government.
A. You purchased $500 in U.S. bonds this year. The bond's value is increasing at a continuous rate of 4.28%. Write the function that gives the value of the population as a function of time t in years.
B. What will the bond's value be in 10 years?
C. The U.S. currently holds nearly $6.1 trillion in government bonds. The total U.S. debt stands at $32 trillion. How long will it take for government bonds holdings to appreciate to the total debt of $32 trillion if the bonds are growing at a continuous rate of 4.28%? ( Hint: this is a logarithmic problem)
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