Question
Maggie, Inc. Issued a 10 year, $100,000 face bond with a 10% interest rate. The bond pays the interest for 10 years and then pays
Maggie, Inc. Issued a 10 year, $100,000 face bond with a 10% interest rate. The bond pays the interest for 10 years and then pays the principal of $100,000 at the end of the 10th year. (Solve 1-3)
1.) If the current interest rates are 10% at the time of the issue, on the date of the issue Maggie Inc. will receive:
a.) $100,000
b.) $91,954.77
c.) $73,734.81
d.) $88,699.55
2.) If the current interest rates are 12% at the time of issue, on the date of issue Maggie Inc. will receive:
a.) $104,986.81
b.) $113.420.16
c.) $88,699.55
d.) $100,000
3.) If the current interest rates are 8% at the time of the issue, on the date of the issue Maggie Inc. will receive:
a.) $104,986.81
b.) $113.420.16
c.) $77,399.11
d.) $100,000
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