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You are considering an (ordinary) annuity investment which costs $100,000 today and offers a return of 3%. The annual payment on the annuity is $5,000.
You are considering an (ordinary) annuity investment which costs $100,000 today and offers a return of 3%. The annual payment on the annuity is $5,000. How long is the annuity investment? 21.49 years 20 years 15.90 years 13.42 years Which one of the following bonds has the greatest interest rate risk? 30y&4% coupon 10y&4% coupon 30y&2% coupon 20y&4% coupon
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