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I Love Finance, Inc. sells 6 - year annuities. A buyer of this annuity receives twelve semiannual cash flows in the amount of $ 7
I Love Finance, Inc. sells year annuities. A buyer of this annuity receives twelve semiannual cash flows in the amount of $ each at the end of each six months. I Love Finance, Inc. will begin these annuity payments in years, and so the first semiannual cash flow will be received by the buyer in years.
a
The annuity's rate of return is percent per year, compounded monthly. An investor buying it in five years will have to pay $Do not round intermediate calculations. Round your final answer to decimal places, eg
b An investor buying it in three years will have to pay $Assume the same rate of return structure as in part aDo not round intermediate calculations. Round your final answer to decimal places, eg
c An investor buying it today will have to pay $Again assume the same rate of return structure as in part aDo not round intermediate calculations and round your answer to decimal places, eg
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