Assume you have a brand new nephew in the family and you want to contribute to the child's college eduction in 18 years. Zero Coupon Bonds that mature in 2040 (18 years) are priced to yield 3.5% and you have $5,000 invest in these bonds. How much will the newest Terrier have ($$) from the above investment when he hits campus? Hint: we tlked about this a very great deal..Ignore any left over cash!

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume you have a brand new nephew in the family and you want to contribute to the child's college eduction in 18 years.

Zero Coupon Bonds that mature in 2040 (18 years) are priced to yield 3.5% and you have $5,000 invest in these bonds.

How much will the newest Terrier have ($$) from the above investment when he hits campus?

Hint: we tlked about this a very great deal..Ignore any left over cash!

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