A government bond pays $100 in interest each year for Three years and also returns the principal of $1,000 in the third year. How much is it worth in terms of today’s money if the rate of interest is 8 percent? If the rate of interest is 12 percent.

A government bond pays $100 in interest each year for Three years and also returns the principal of $1,000 in the third year. How much is it worth in terms of today’s money if the rate of interest is 8 percent? If the rate of interest is 12 percent.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 8DQ

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