LL+ SAPLINGPLUS ACCESS MACRO 1TERM
4th Edition
ISBN: 9781319319007
Author: KRUGMAN
Publisher: MAC LTD
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Chapter 10.A, Problem 3P
To determine
Concept Introduction:
Bonds: It is a type of promise or contract to pay in the future with certain limitations and conditions specified at the time of issuing the bond.
The present value of Amount: It is the quantity of money which is needed in the present time in order to gain an amount at the upcoming date at a specific interest rate.
The formula to calculate present value is,
- PV is the present value of amount.
- X is the future amount.
- n is the number of years.
- i is the interest rate.
Stock
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