[Question 9] There is a government bond. If you buy this bond, you can receive 20,000 yen after 3 years. Three people are bidding to buy the bond. Their required rates of return are as follows: Mr. X 3.0% Mr. Y 2.5% Mr. Z 2.0% Calculate the present value of this bond for each person. Answers should be like one of the examples after rounding the 1st decimal point. 12345.4 → 12345 or 12345.6 → 12346 How much is the present value for Mr. X?
[Question 9] There is a government bond. If you buy this bond, you can receive 20,000 yen after 3 years. Three people are bidding to buy the bond. Their required rates of return are as follows: Mr. X 3.0% Mr. Y 2.5% Mr. Z 2.0% Calculate the present value of this bond for each person. Answers should be like one of the examples after rounding the 1st decimal point. 12345.4 → 12345 or 12345.6 → 12346 How much is the present value for Mr. X?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![[Question 9]
There is a government bond. If you buy this bond, you can receive 20,000 yen after 3 years. Three
people are bidding to buy the bond. Their required rates of return are as follows:
Mr. X
3.0%
Mr. Y
2.5%
Mr. Z
2.0%
Calculate the present value of this bond for each person. Answers should be like one of the examples
after rounding the 1st decimal point. <Examples> 12345.4 → 12345 or 12345.6 → 12346
<Question 9-1> How much is the present value for Mr. X?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F058c8029-ff36-4523-9a10-49a9f817e05f%2F05afe692-f1b7-44fd-a235-49780e37134b%2F0qqo8yk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Question 9]
There is a government bond. If you buy this bond, you can receive 20,000 yen after 3 years. Three
people are bidding to buy the bond. Their required rates of return are as follows:
Mr. X
3.0%
Mr. Y
2.5%
Mr. Z
2.0%
Calculate the present value of this bond for each person. Answers should be like one of the examples
after rounding the 1st decimal point. <Examples> 12345.4 → 12345 or 12345.6 → 12346
<Question 9-1> How much is the present value for Mr. X?
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