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KiRa [710]
3 years ago
13

Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%,

how much is the bond worth today? a. $2,967.92 b. $3,116.31 c. $3,272.13 d. $3,435.74 e. $2,819.52
Business
1 answer:
Luda [366]3 years ago
4 0

Answer:

The answer is a. $2,967.92

Explanation:

Calculation of prent value

Present value = p* (1+i)^-10

Present value = $4,500 * (1+0.0425)^-10= <u>$2,967.92</u>

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