You have a savings bond that $1000 when it matures in 20 years from today but...
You have a savings bond that $1000 when it matures in 20 years from today but you need cash now. If the current interest rate is 4% what can you get for the bond if you sell today?
Homework Answers
This is like a zero coupon bond, that is not paying any intermittent interest.
Value = 1000/2.1911
Value = 456.39
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