Suppose a us government bond promises to pay 1000 three, Financial Management

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Suppose a us government bond promises to pay 1000 three

Suppose a U.S. government bond promises to pay $1,000 three years from now, with no payments until the end of the 3rd year. If the going annual interest rate on such bonds is 6%, how much is the bond worth today? a. $881.60 b. $925.68 c. $839.62 d. $971.97 e. $797.64

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