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Please show all work A. You own a bond that matures in nine years at which time you will receive $1,000. If current interest rates
Please show all work
A. You own a bond that matures in nine years at which time you will receive $1,000. If current interest rates are 4.75% how much would you accept today?
B. Using the same data as above, how much would you accept if maturity was twenty years?
C. You borrowed $2,000 from and entered into an agreement to pay the amount back in three years. If current interest rates are 3%, how much would you pay your friend back if he/she wanted their money early?
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