What is the relationship between thevalue of an annuity and the level of interest rates? Suppose you

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What is the relationship between thevalue of an annuity and the level of interest rates? Suppose you just bought a 13-yearannuity of $7,500 per year at the current interest rate of 10 percent per year. Whathappens to the value of your investment if interest rates suddenly drop to 5 percent?What if interest rates suddenly rise to 15 percent?

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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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