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For the following questions assume an ordinary annuity of $1000 and a required return of 12 percent.
a. what is the future value of a ten year ordinary annuity?
b. if you earned an additional year's worth of interest on this annuity, what would be the future value?
c. what is the future value of a ten year annuity due?
d. what is the relationship between your answers in parts (b) and (c)? Explain.
A Japanese company has a bond outstanding that sells for 87 percent of its ¥100,000 face value. The bond has a coupon rate of 4.3 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?
Industries that generally perform well when other industries are performing well are referred to as:
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