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  3. you have just won a very special prize, a \"consol

You have just won a very special prize, a \"consol\" bond that pays $30,000 every six...

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Finance

You have just won a very special prize, a \"consol\" bond thatpays $30,000 every six months (semi-annual payment) forever. Theonly caveat is that the first payments is given 5.5 years from now.You are not that enthusiastic about waiting that long. In fact, youreally want to simply receive 13 quarterly payments with the firstpayment starting one quarter from now. If the APR is 12% compoundedmonthly, what is the quarterly payment amount you want to receiveinstead? For your answer round to the nearest dollar, do not enterthe dollar ($) sign, and use commas for the thousands. For example,if you obtained $1,240.75 then enter 1,241

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Answer & Explanation Solved by verified expert
4.2 Ratings (632 Votes)
Effective APR for 6 months 1121261 Effective APR for 6 monthshalf year 10016 10161 1061521 006152 or 6152 Value of annuity of 30000 to be received after 5 years annuityEffective APR for 6 months Since the    See Answer
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