The Present Value of a Discount Bond with Two Years

question 58

Multiple Choice

The present value of a discount bond with two years to maturity, face value of $10,000 and yield to maturity 4% is

• A) $7,142.86.
• B) $9,245.56.
• C) $9,615.38.
• D) none of the above.

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Definitions:

Bank Statement

A record issued by a bank detailing all transactions in a depositor's account over a given period.

Depositor's Account

An account maintained by a bank or financial institution for the depositor, recording the amount of money deposited.

Account Balance

The amount of money in a financial repository at any given moment, which can include bank accounts or credit accounts.

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn from, often resulting in a fee.