1. The Dholakia Ditch Digging Company needs to raise capital.  They offer a bond with coupon payments of $5,000 payable once every three years.  The annuity lasts for exactly 30 years with the last payment occurring at the end of year 30.  The first payment is made at the end of year three.  Assume an annual interest rate of 7%. How much money can they raise today by issuing this bond?

Answer rating: 100% (QA)

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