When I Is the Annual Interest Rate,the Formula for Calculating

question 66

Multiple Choice

When i is the annual interest rate,the formula for calculating the present value of a bond with a face value of R dollars,receivable in one year is

• A)PV = (1 + i)/R.
• B)PV = i(R + i).
• C)PV = R (1 + i).
• D)PV = R/i.
• E)PV = R/(1 + i).

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