Suppose a Google.com bond will pay $4,500 ten years from now. If the current interest rate on

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Suppose a Google.com bond will pay $4,500 ten years from now. If the current interest rate on the safe 10-year bond is 4.25%, how much is the bond worth today?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: May 12, 2023 01:41 AM

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Suppose a Google.com bond will pay $4,500 ten years from now. If the current interest rate on

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To calculate the present value of the bond we can use the formula for present value of a future cash ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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