Suppose a U S Treasury bond will pay $1,000 twenty years from now, with no interest payments in between If the going interest rate on 20 year treasury bonds is 2 89 , how much is the bond worth today Your answer should be between 440 00 and 720 00, rounded to 2 decimal places, with no special char...

The present value of a bond can be calculated using the formula PV ...

Suppose a U.S. Treasury bond will pay $1,000 twenty years from now, with no interest payments...

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Suppose a U.S. Treasury bond will pay $1,000 twenty years from now, with no interest payments...

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