Figuring out the interest rate from present value also the maturity value
Explain how is interest rate defined? Elucidate why is there a lower present value of goods to be delivered in the future? If in New York, state bonds paying $1,000.00 at maturity (one yr hence) are selling for $650.00 also in New Jersey sell for $800.00, Illustrate what are their respective interest rates? Describe the adjustments which you think will ensue.