Homework Answers
Formula:
Present value = Future value÷(1+Interest rate)^n
PV= FV÷(1+r)^n
Here PV = Price of the bond.
FV = Face value
n = no. of periods = 1.
r = 4%
PV = $10,000÷(1.04)^1
PV =$ 9615.38
Price of the Bond = $9615.38
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