Question
Q1 . Jinan is planning to go to graduate school in a program of study that will take three years. Jinan wants to have $
Q1.Jinan is planning to go to graduate school in a program of study that will take three years. Jinanwants to have $8,000 available each year for various school and living expenses. If he earns 3 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $8,000 a year for three years?
Answer:
Q2.Three years ago, you purchased a seven-year $1,000 par value corporate bond with a coupon interest rate of 5 percent. Today comparable bonds are paying 6.5 percent. For simplicity, we assume that the interest is paid annually.
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