1.A borrower agrees to repay an investor $2,000 in five years. Assuming a 6% interest rate, what...

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1.A borrower agrees to repay an investor $2,000 in five years. Assuming a 6% interest rate, what is the value of the bond today?

2.The present value of an investment today is $585.43. The investment matures in 10 years and it was agreed the investor would be paid $1,000. What is the interest rate the investor is expected to earn?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Apr 08, 2024 05:33 AM

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1.A borrower agrees to repay an investor $2,000 in five years. Assuming a 6% interest rate, what...

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Present Value of a Bond The present value PV of a bond is the current worth of all the future cash flows interest payments and principal repayment fro... View the full answer

Fundamentals of Financial Management

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