What Is the Present Value of $150,000 to Be Received

question 61

Multiple Choice

What is the present value of $150,000 to be received 10 years from today if the discount rate is 11 percent?

• A)$52,827.67
• B)$61,147.07
• C)$64,141.41
• D)$69,806.18
• E)$73,291.06

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Definitions:

Semi-Annual Coupon Bonds

Bonds that pay interest to holders twice a year, typically known for providing a steady income stream to investors.

Yield To Maturity

The total return expected on a bond if held until its maturity date, expressed as an annual rate.

Semi-Annual Coupons

Interest payments made to bondholders twice a year as a return on investment for holding the bond.

Yield To Maturity

The expected total profit from a bond when retained until it reaches its maturity date.