"What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a 12 year annuity of $7,500 per year at the current interest rate of 10 percent per year. What happens to the valueof your investment if interest rates suddenly drop to 5 percent? What if interest rates suddenly rise to 15 percent?"
Paper#6998 | Written in 18-Jul-2015Price : $25