A Bond Maturing in 10 Years Pays $80 Each Year

question 18

Multiple Choice

A bond maturing in 10 years pays $80 each year (including year 10) and $1,000 upon maturity.Assuming 10 percent to be the appropriate discount rate,the present value of the bond is

• A) $877.11.
• B) $1,000.00.
• C) $416.39.
• D) $1,785.67.

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