Mathias purchases a 10-year CD for $10000 with 2.8% APR compounded monthly, and a 10-year bond for $10000 with a 3.3% coupon rate, paid annually. How much will Mathias’s original $20000 investment be worth at the end of the 10 years? Round your answer to the nearest cent.
Mathias purchases a 10-year CD for $10000 with 2.8% APR compounded monthly, and a 10-year bond for $10000 with a 3.3% coupon rate, paid annually. How much will Mathias’s original $20000 investment be worth at the end of the 10 years? Round your answer to the nearest cent.
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 5P
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Mathias purchases a 10-year CD for $10000 with 2.8% APR compounded monthly, and a 10-year bond for $10000 with a 3.3% coupon rate, paid annually. How much will Mathias’s original $20000 investment be worth at the end of the 10 years? Round your answer to the nearest cent.
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