A Corporation Has Promised to Pay $1,000 20 Years from Today

question 83

Multiple Choice

A corporation has promised to pay $1,000 20 years from today for each bond sold now.No interest will be paid on the bonds during the 20 years,and the bonds are discounted at a 7% interest rate.Approximately how much should an investor pay for each bond?

• A) $70.00
• B) $258.42
• C) $629.56
• D) $857.43

---

Definitions:

Placeholders

Temporary spaces or fields in documents and presentations that are designed to be replaced with specific content such as text or images.

Codec

A device or software that encodes or decodes digital data streams or signals, typically used for compressing and decompressing audio or video.

Digital Media

Content or information shared and consumed through digital devices, encompassing video, audio, and web content.

Trim Video

The process of editing a video by cutting out unwanted parts from the beginning, middle, or end to adjust its length or focus.