A government bond pays $100 in interest each year for three years and also returns the principal

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A government bond pays $100 in interest each year for three years and also returns the principal of $1,000 in the third year. How much is it worth in terms of today's money if the rate of interest is 8 percent? If the rate of interest is 12 percent?

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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Apr 12, 2016 07:18 AM

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A government bond pays $100 in interest each year for three years and also returns the principal

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Economics Principles and Policy

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