Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 39P
To determine

Calculate the future value.

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ENGINEERING ECONOMICS For a company that uses a year as its interest period,determine the net cash fl ow that will be recorded at the end of the year from the cash flows shown.
A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive?I know the answer is 4.97% I just need help with the process.
Please include the cash-flow diagram as well. Thank you
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