Present-value question a consider a 1-year bond yielding, Business Economics

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Present-value question a consider a 1-year bond yielding

Present-value question: (a) Consider a 1-year bond yielding $1100 at maturity. Calculate the present value of the bond if the interest rate is 1, 10 and 20 percent. What relationship do you observe between the present value/asset price and the interest rate?

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Business Economics: Present-value question a consider a 1-year bond yielding

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Business Economics: Present-value question a consider a 1-year bond yielding

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