Your Retirement Part Ii The 30 Year United States

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Your Retirement part II The 30-year United States Treasury bond is currently yielding about 287%. After reviewing Quiz 4, you decide you want to have $1,000,000 worth of bonds to begin your retir…

Your Retirement part II The 30-year United States Treasury bond is currently yielding about 287%. After reviewing Quiz 4, you decide you want to have $1,000,000 worth of bonds to begin your retirement, because the interest earned from a bank's savings account is lousy. Assuming you make annual purchases of 30-year Treasury bonds (think 2.87% annual interest), how much do you need to purchase each year in order to have $1,000,000 at the end of 35 years? Hint: Suppose y(t) reports the value of your bondst years from now. Let X – how much you plan to buy each year, then solve the differential equion 0329 yitj+xy(0) 0, leaving X in your answer temporarily. Lastly solve y(35) – 1,000,000 for X. 6)

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