Question
What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a value of annuity of
What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a value of annuity of $7,500 per year at the current interest rate of 10 percent per year. What happens to the value of your investment if interest rates suddenly drop to 5 percent? What if interest rates suddenly rise to 15 percent?
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
