A bond pays $100 at the end of each year for five years, plus an additional $1,000

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A bond pays $100 at the end of each year for five years, plus an additional $1,000 when the bond matures at the end of five years. What is the most you would be willing to pay for this bond if your opportunity cost of funds is 6 percent?

Related Book For answer-question

Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

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Posted Date: Jan 09, 2021 12:49 AM

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A bond pays $100 at the end of each year for five years, plus an additional $1,000

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the present value of benefits of bon... View the full answer

Finite Mathematics and Its Applications

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