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?

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?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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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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