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? O a. $483.98 O b. $475.09 O c. $508.35 d. $502.57 O e. $543.93

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? O a. $483.98 O b. $475.09 O c. $508.35 d. $502.57 O e. $543.93

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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Question

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?
O a. $483.98
b. $475.09
Oc. $508.35
Od. $502.57
O e. $543.93

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