17.Eighteen years ago when your maternal grandmother passed away, she bequeathed to you 52 Merrill Lynch bonds. Since that time your parents have been investing the coupons in an account that yields 6.84%. Assuming the bonds and the account your parents have for you are all that you have, how much will you be worth altogether, on the day the bonds mature?
The coupon for the bond is 6.875% and it matures April 2018. The date we're starting from is December 21st 2009. It seems to be a future value of an annuity problem but every calculation I've done has came out wrong. She gives us the answer of ($175,115.16) but I don't know how to get it.
If you could help me it would be greatly appreciated.
The coupon for the bond is 6.875% and it matures April 2018. The date we're starting from is December 21st 2009. It seems to be a future value of an annuity problem but every calculation I've done has came out wrong. She gives us the answer of ($175,115.16) but I don't know how to get it.
If you could help me it would be greatly appreciated.