How much is bond worth today due to going interest rate


Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 7.3%, how much is the bond worth today?

a. $529.28
b. $500.82
c. $631.72
d. $569.12
e. $478.06

Solution Preview :

Prepared by a verified Expert
Finance Basics: How much is bond worth today due to going interest rate
Reference No:- TGS0674210

Now Priced at $5 (50% Discount)

Recommended (98%)

Rated (4.3/5)