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Unformatted text preview: be able to pay back your loan in full 5 years later? Suppose a friend of yours offers you a deal. You give her the amount that you were going to save by purchasing the bond, and shell repay you five years later 120% of what she borrowed. Should you still buy the bond? What percent of the amount saved would your friend have to return in order for you to save with her instead of buying the bond that compounds annually?...
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This note was uploaded on 03/18/2009 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.
- Spring '08
- Interest Rates