Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.0%, how much is the bond worth today?
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Bond worth today = Future value / (1 + Interest rate)^Time
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- Suppose a State of New Jersey bond will pay $1,000 five years from now. If the going interest rate on these 10-year bonds is 4.1%, how much is the bond worth today? 1. $675.79 2. $817.99 3. $628.96 4. $749.39 5. $669.10Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate on these 8- year bonds is 5.5%, how much is the bond worth today? Oa. $792.02 Ob. $718.39 O c. $684.18 O d. $754.31 Oe. $651.60Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? $585.43 $614.70 $645.44 $677.71 $711.59
- Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? a. $502.57 b. $483.98 c. $475.09 d. $543.93 e. $508.35Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? O a. $483.98 b. $475.09 Oc. $508.35 Od. $502.57 O e. $543.93
- If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 0 15% 17.6% 1.18% It depends on what the Federal Reserve sets as its target rate for the Federal Funds Rate.Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is? a. P1,560.00 b. P1,540.00 c. P1,440.00 d. 1,442.31A bond promises to pay $150 in one year. What is the interests rate on the bond if its price today is $65,$75 and $85?
- 64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months. How much should you be able to pay for this bond if your nominal annual necessary rate of return is 10% with semiannual compounding? a. $ 826.31b. $1,086.15c. $ 957.50d. $1,431.49e. $1,124.62Suppose a Puerto Rico government bond pays $3,255.80 in 4 years at 4% interest. Calculate the present value of the bond. Determine the value of the bond assuming it will mature in 6 years at 5% interest.How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100 interest annually assuming your required rate of return is 12% (pick closest answer)? a. $901 b. $1,032 c. $1,007 d. $962