Multiple Choice
A corporation has promised to pay $1,000 20 years from today for each bond sold now.No interest will be paid on the bonds during the 20 years,and the bonds are discounted at a 7% interest rate.Approximately how much should an investor pay for each bond?
A) $70.00
B) $258.42
C) $629.56
D) $857.43
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q7: What will be the approximate population of
Q14: In calculating the present value of $1,000
Q24: What is the minimum nominal rate of
Q39: Your car loan requires payments of $200
Q41: You're ready to make the last of
Q60: $50,000 is borrowed,to be repaid in three
Q79: How much more would you be willing
Q81: Which account would be preferred by a
Q85: With $1.5 million in an account expected
Q111: The present value of an annuity due