You purchased a bond and will receive $500 every six months for the next five years. If the market rate of interest is 4%, what is the present value of your stream of interest payments? (a stream of equal interest payments is considered an annuity).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 17P
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You purchased a bond and will receive $500
every six months for the next five years. If the market rate
of interest is 4%, what is the present value of your stream of
interest payments? (a stream of equal interest payments is
considered an annuity).

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