Ask Question
27 July, 04:14

Suppose your uncle purchased a bond that pays $100 in 5 years. If the interest rate is 6%, what is the present value of the bond? a. - 69. 37b. - 74.73c. - 97.54d. - 87.35e. - 80.11

+4
Answers (1)
  1. 27 July, 06:01
    0
    b. - 74.73

    Explanation:

    In this question we need to find the price or present value of the bond. We know that the bond pays 100 in 5 years which means that the future value is 100, there are no payment so payments are 0, and the interest rate is 6%. We will input these values in a financial calculator and compute the PV.

    FV = 100

    PMT=0

    I=6

    N=5

    Compute PV=-74.73
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose your uncle purchased a bond that pays $100 in 5 years. If the interest rate is 6%, what is the present value of the bond? a. - 69. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers