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You Have a Bond That You Can Redeem for €10,000

Question 34

Multiple Choice

You have a bond that you can redeem for €10,000 one year from now. The interest rate is 10 per cent per year. How much is the bond worth today?

A) €9,090.91
B) €11,000.00
C) €9,000.00
D) €,523.81

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