Solved

You Have Just Won a $50,000 Bond That Pays No

Question 20

Multiple Choice

You have just won a $50,000 bond that pays no interest and matures in 20 years. If the discount rate is 10%, what is the present value of your bond?

A) $7,450
B) $8,175
C) $8,900
D) $1,490

Related Questions

Q15: Seebee makes quarterly (end-of-period) payments of $30,000

Q16: Explain the concept of interest and compare

Q17: Finding the discounted current value of $1,000

Q18: You purchased a piece of property for

Q19: The more frequent the compounding, the _.<br>A)

Q21: You sold 100 shares of stock today

Q22: You just purchased a new $25,000 car

Q23: The process of finding present values is

Q24: _ interest is paid not only on

Q25: The effective rate of interest will always