16-20

Suppose you have $2, 000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. How much will you have when the cd matures? $3.754.27 $3, 941.99 $4, 139.09 $4, 346.04 $4, 563.34 How much would $20, 000 due 50 years be worth today it the discount rate were 7.5%? $438.03 $461.08 $485.35 $510.89 $537.78 How much would $5, 000 due 25 years be worth today if the discount rate were 5.5%? $1, 067.95 $1, 124.16 $1, 183.33 $1, 245.61 $1, 311.17 Suppose a U.S. treasury bond will pay $2, 500 five years from now. if the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today? $1, 928.78 $2, 030.30 $2, 131.81 $2, 238.40 $2, 350.32 Sunned an Exxon Corporation bond will pay $4, 500 ten years from now. if the interest rate on safe 10-year bonds is 4.25%, how much is the bond worth today $2, 819.52 $2, 967.92