Question: 1.13. Using a spreadsheet and the material in the appendix, answer the following questions. a. Assume the interest rate is 5% (0.05). Calcu late the

1.13. Using a spreadsheet and the material in the appendix, answer the following questions.

a. Assume the interest rate is 5% (0.05). Calcu late the value of a bond that pays $100 at the 202 • PART 2 • EconomicGrowth end of every year for the next 9 years and then at the end of the 1Oth year pays $1 000.

b. Calculate the value of this bond if the interest rate is 3%.

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