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Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 12.5%,

Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 12.5%, how much is the bond worth today?

Select the correct answer.

a. $301.15
b. $287.55
c. $280.75
d. $294.35
e. $307.95

image text in transcribed

Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 12.5%, how much is the bond worth today? Select the correct answer. a. 5301.15 b. $287.55 C. $280.75 d. $294.35 e. $307.95

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