Suppose a treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 5%, how much is the bond worth today? Round-off answer to 2 decimal values.
Suppose a treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 5%, how much is the bond worth today? Round-off answer to 2 decimal values.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 2P
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Suppose a treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 5%, how much is the bond worth today? Round-off answer to 2 decimal values. *
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