Question: 13. What is an annuity? How much would you expect to pay for a 20-year annuity that makes annual payments of $1000, if the

13. What is an "annuity"? How much would you expect to pay

13. What is an "annuity"? How much would you expect to pay for a 20-year annuity that makes annual payments of $1000, if the interest rate is expected to average 3.5% over that period? How much would you expect to pay for a 20-year, $10,000 (face value) coupon bond that makes annual coupon payments of $1000, if the interest rate is expected to average 3.5% over that period?

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