Problems:

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?