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Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 1 8 years.
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for years. Assume you purchase a bond that costs $
a What is the exact rate of return you would earn if you held the bond for years until it doubled in value? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
bIf you purchased the bond for $ in at the then current interest rate of percent year, how much would the bond be worth in Do not round intermediate calculations and round your answer to decimal places, eg
cIn instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in What annual rate of return will you earn over the last years? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
tablea Rate of return,,
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