Tom puts $500 into a savings account for 20 years and earns 10% interest. Jerry puts $600 into a savings account for 20 years and earns 10% interest. Who has the higher future value?

Tom puts $500 into a savings account for 20 years and earns 8% interest. Jerry puts $500 into a savings account for 20 years and earns 10% interest. Who has the higher future value?

Tom puts $500 into a savings account for 10 years and earns 10% interest. Jerry puts $500 into a savings account for 10 years and earns 10% interest. Who has the higher future value?

18. Jesse just won the state lottery. He has been given the option of receiving either $5 million a year for the next 30 years, with the first payment paid today. Is this a present value or future value of an annuity due?

What is the difference between the coupon rate and the market rate or yield?

When, in a bonds life, would the market rate (or yield) equal the coupon rate?

Why do these rates often diverge over time?