A childs grandparents purchase a $10,000 bond fund that matures in 18 years to be used for
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A child’s grandparents purchase a $10,000 bond fund that matures in 18 years to be used for her college education. The bond fund pays 4% interest compounded semiannually. How much will the bond fund be worth at maturity? What is the effective rate of interest? How long will it take the bond to double in value under these terms?
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The effective interest rate is computed as f...View the full answer
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