Monday

March 30, 2015

March 30, 2015

Posted by **Anonymous** on Wednesday, September 21, 2011 at 8:26pm.

I'm confused.

- Calculus -
**Steve**, Thursday, September 22, 2011 at 11:29amThe bond grows for 20 years, so you need to calculate the value after the 20th year. Since it grows by 3.9% per year, multiply each year's value by 1.039 to get the next year's value.

ding ding ding - use the growth factor formula: Tn = a r^(n-1)

a=5000

n=20

r = 1.039

**Answer this Question**

**Related Questions**

Calculus - A government bond is bought for $5000 on June 1, 2010. The value of ...

Finance - A 12-year bond has an annual coupon rate of 9%. The coupon rate will ...

Finance - A four-year TIPS bond promises a real annual coupon return of 4 ...

accounting - On December 31, 2013, a company issues bonds with a par value of $...

Economics - Isabella buys a $1,000 bond that matures in 10 years (that is, she ...

finance - The Corner Grocer has a 7-year, 6 percent annual coupon bond ...

finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...

finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...

Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...

Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...