Based on the terms of a bond, it pays a holder $62,500 three years after it...

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Based on the terms of a bond, it pays a holder $62,500 three years after it...

Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding.

1. $55,541

2. $55,549

3. $55,554

4. $55,559

5. $55,562

6. $55,568

7. none of the above

business accounting

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Answer 1

Answer #1

The answer is 5. $55,562

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The ansevea ig O $55562 Calculation Band interost payable $462500 (x) Present value e factor @ Year 3 47 एंoक: = 0.88899 Paes

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Answer 2

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Based on the terms of a bond, it pays a holder $62,500 three years after it...

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