What is the present value of $1000 to be received 15 years from today, assuming an interest rate of 6% per year?

Select one:

a. $404.

b. $411.

c. $417.

d. $388.

Question 24

Given the following ATT Ltd. bond information: $1000 par value, maturity 2023 Dec 22, semi-annual coupon 7.75 percent, price 105.50 and yield 7.4 percent. How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing?

Select one:

a. $105.50

b. $740

c. $1055

d. $1000

Question 25

Which of the following bond mutual funds has both the lowest default risk and interest rate risk?

Select one:

a. Short -term corporate

b. Short-term federal

c. Short-term high-yield

d. T-bill