An investment in consol bonds promises to provide an interest payment of $2.5 million a year in perpetuity. If the interest rate is 3.3%, what is the value of this investment?
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- Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate is 6.8% ?You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You initially pay $950 for the bond. You receive an annual interest payment after one year, then sell the bond for $880. What is your total rate of return on the investment, expressed as a percentage of the purchase price?
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