Discuss the prices of premium bonds-discounted bonds

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1. Discuss the prices of premium bonds, discounted bonds, and par-value bonds as the maturities of those bonds decreases.

2. Each day, you deposit $4.65 into a bank account whose annual rate is 1.2% with daily compounding. How much interest will you have earned after 20 years?

3. A company buys a color printer that will cost $12,000 to buy, and last 5 years. It is assumed that it will require servicing costing $700 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%?

-$3983

-2,629

-$4029

-$5493

Reference no: EM131890784

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