Ask Question
25 March, 06:48

Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%, how much is the bond worth today? a. $2,967.92 b. $3,116.31 c. $3,272.13 d. $3,435.74 e. $2,819.52

+5
Answers (1)
  1. 25 March, 06:52
    0
    The answer is a. $2,967.92

    Explanation:

    Calculation of prent value

    Present value = p * (1+i) ^-10

    Present value = $4,500 * (1+0.0425) ^-10 = $2,967.92
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%, how much ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers