The going rate of interest on a -year treasury bond is

Question

The going rate of interest on a 5-year treasury bond is 4.25%. You have one that will pay $2,500 five years from now. How much is the bond worth today?

a. $1,928.78

b. $2,030.30

c. $2,131.81

d. $2,238.40

e. $2,350.32

Answer

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