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3a. Suppose a U.S. gov ernment bond promises to pay $2,249.73 three years from now. If the going interest rate on 3- year government bonds
3a. Suppose a U.S. gov ernment bond promises to pay $2,249.73 three years from now. If the going interest rate on 3- year government bonds is 4%, how much is the bond worth today? 4% $0 $2,250 PMT FV b. How would your answer change if the bond matured in 5 rather than 3 years? PMT FV $0 $2,250 3c. what if the interest rate on the 5-year bond was 6% rather than 4%? 6% $0 $2,250 PMT FV PV
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