If a bond pays $1500 in one year and $2500 in two years, its present value...

 

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If a bond pays $1500 in one year and $2500 in two years, its present value is $2800. Find the interest rate which equates the price of the bonds with the discounted future values. [Hint: Consider using 10 different interest rates in your experiment ranging between 20% and 30%]. If a bond pays $1500 in one year and $2500 in two years, its present value is $2800. Find the interest rate which equates the price of the bonds with the discounted future values. [Hint: Consider using 10 different interest rates in your experiment ranging between 20% and 30%].

Answer rating: 100% (QA)

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