Homework Answers
Answer:
Correct answer is:
b. $9,713
Explanation:
Holder will get $10,000 at the end of six months.
Interest rate = 6%
Interest for six months = 6%/2 = 3%
Current price = PV = FV (1 + Interest rate)
= $10,000 / (1 + 3%)
= $9708.74
From the available options, closest one is $9,713
As such option B is correct and other options A, C and D are incorrect.
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