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adelina 88 [10]
3 years ago
6

You are considering a savings bond that will pay $ 100 in 9 years. If the interest rate is 1.9 %​, what should you pay today for

the​ bond?
Business
1 answer:
Dmitrij [34]3 years ago
5 0

Answer:

You should pay $84.42 today for the​ bond.

Explanation:

bond price = value of bond/[(1 + interest rate)^number of years]

                   = $100/[(1 + 1.9%)^9]

                   = $100/(1.185)

                   = $84.42

Therefore, You should pay $84.42 today for the​ bond.

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