Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? $585.43 $614.70 $645.44 $677.71 $711.59
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- Suppose a State of New Jersey bond will pay $1,000 five years from now. If the going interest rate on these 10-year bonds is 4.1%, how much is the bond worth today? 1. $675.79 2. $817.99 3. $628.96 4. $749.39 5. $669.10Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.0%, how much is the bond worth today? Select one: a. $564.80 b. $466.57 c. $613.91 d. $736.70 e. $724.42Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate on these 8- year bonds is 5.5%, how much is the bond worth today? Oa. $792.02 Ob. $718.39 O c. $684.18 O d. $754.31 Oe. $651.60
- Suppose a state of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bond is 6.4%, how much is the bond worth today?2. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.9%, how much is the bond worth today: a) with annual compounding b) with monthly compoundingSuppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.
- Suppose a Puerto Rico government bond pays $3,255.80 in 4 years at 4% interest. Calculate the present value of the bond. Determine the value of the bond assuming it will mature in 6 years at 5% interest.If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 0 15% 17.6% 1.18% It depends on what the Federal Reserve sets as its target rate for the Federal Funds Rate.Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? a. $502.57 b. $483.98 c. $475.09 d. $543.93 e. $508.35
- A government bond with a face value of $1,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $45, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today? a. $1,052.82 b. $1,033.66 c. $1,000.00 d. $817.78 e. $1,058.26A $1,000 face value bond issued by the Purdue Company currently pays total annual interest of $80 per year and has a 15-year life. a-What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality bond? b. How would your answer change is the bond makes semi-annual payments? c-How would your answer in (a) change if, one year from now, investors only required a 6 percent annual rate of return on bond investments similar in quality to the Purdue bond? d-Suppose the original bond can be purchased for $925. What is the bond’s yield to maturity?An lowa state savings bond can be converted to $100 at maturity 9 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 7% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. 3.