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german
3 years ago
8

How much does the $1,000 to be received upon a bond's maturity in 4 years add to the bond's price if the appropriate discount ra

te is 6%
Business
1 answer:
Soloha48 [4]3 years ago
8 0

Answer:

$792.09

Explanation:

Calculation for how much that was received upon a bond's maturity

Using this formula

Amount received=Amount received to be received upon a bond's maturity /(1+Discount rate)^Bond's maturity years

Let plug in the formula

Amount received=$1,000/(1+0.06)^4

Amount received=$1,000/(1.06)^4

Amount received= $792.09

Therefore how much that was received upon a bond's maturity will be $792.09

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