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

question 110

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 = iR + i).
• C) PV = R 1 + i).
• D) PV = R/i.
• E) PV = R/1 + i).

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