Question
Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.4%,
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Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.4%, how much is the bond worth today?
a. $773.65
b. $630.62
c. $806.15
d. $650.12
e. $812.65
Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.4%, how much is the bond worth today?
| a. | $773.65 | |
| b. | $630.62 | |
| c. | $806.15 | |
| d. | $650.12 | |
| e. | $812.65
|
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Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 4.9%, how much is the bond worth today?
a. $688.84
b. $600.18
c. $832.06
d. $682.02
e. $511.51
You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $7,400 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today?
| a. | $36,449.93 | |
| b. | $28,955.55 | |
| c. | $36,109.28 | |
| d. | $40,537.77 | |
| e. | $34,065.36 |
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Jose now has $500. How much would he have after 6 years if he leaves it invested at 6.2 % with annual compounding?
a. $710.15
b. $638.42
c. $602.55
d. $717.33
e. $738.85
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