You have just won a very special prize, a "consol" bond that pays $40,000 every six months (semi-annual payment) forever. You are not that enthusiastic about waiting that long. In fact, you really want to simply receive lumpsum amount today. If Apr is 12% compunded monthly. What is the amount you want to receive today instead?

Answer rating: 100% (QA)

To calculate the lump sum amount you would need to receive today instead of the conso... View the full answer