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puteri [66]
4 years ago
15

Suppose a Google.com bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%, how muc

h is the bond worth today?
Mathematics
1 answer:
bazaltina [42]4 years ago
8 0

Answer:

2,967.92 ( dollars )

Step-by-step explanation:

The amount the bond is worth, should be the present value of the bond, other wise known as PV. If it is given that Google.com bond will pay $ 4,500 ten years from now, it should be that the future value, otherwise known as FV, is 4,500 dollars.

Consider the given. There is a 4.25 percent discount rate, a time span of 10 years ( tenor / time ) and of course a future value of 4,500 dollars. Using this, we can calculate the present value -

PV = FV / ( ( 1 + rate )^{time} ),\\PV = 4,500 / ( 1 + 4.25 / 100 )^{10}\\----\\( Calculations ) PV = ( About ) 2,967.92 ( dollars )\\Solution = 2968 ( dollars )

As you can see, through simple calculations the solution should be that the bond worth is about $ 2,967.92

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3 years ago
Write a expression that is equivalent of 4+3(5+x)
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Answer: 19 + 3x

Step-by-step explanation:

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The original price of a ski jacket was $270. It was on sale at a 25% discount. Arianna had a coupon for an additional 10% off th
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8 0
3 years ago
-2.3(4.5-3 1/2)<br> What is the answer
LUCKY_DIMON [66]

The computation shows that the value of the expression is 2.3.

<h3>How to illustrate the information?</h3>

It should be noted that the information given is illustrated as:

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2.3(4.5-3 1/2)

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