What is the relationship between the value of an annuity and the level of interest rates? Suppose
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What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought an annuity with 13 annual payments of $10,000 per year at a discount rate of 10 percent per year. What happens to the value of your investment if the discount rate suddenly drops to 5 percent? What if the discount rate rate suddenly rises to 15 percent?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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