Suppose a U

question 23

Multiple Choice

Suppose a U.S. Treasury bond promises to pay $9,780.13 in three years. If bonds of this type are generating a 4 percent annual return, how much would you pay for this bond today?

• A) $8,429.71
• B) $11,001.32
• C) $8,694.50
• D) $9,112.78

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Definitions:

Planning

The process of making detailed decisions about what is going to be done in the future, based on goals and strategies.

Writing

The process or activity of producing text for various purposes, such as communication, storytelling, or documentation.

Completing

The act of finishing a task or project.

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