Suppose 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 b. $718.39 c. $684.18 O d. $754.31 Oe. $651.60
Suppose 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 b. $718.39 c. $684.18 O d. $754.31 Oe. $651.60
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
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
Transcribed Image Text:Suppose 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. $651.60
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