Calculate the value of a bond that pays hundred dollar

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Reference no: EM131832919

Using a spreadsheet and the material in the appendix, answer the following questions.

a. Assume the interest rate is 5% (0.05). Calculate the value of a bond that pays $100 at the end of every year for the next 9 years and then at the end of the 10th year pays $1000.

b. Calculate the value of this bond if the interest rate is 3%.

Reference no: EM131832919

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