Finding present value and the maturity value

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How is interest rate defined? Why is there a lower present value of goods to be delivered in the future? If in New York, state bonds paying $1,000.00 at maturity (one year hence) are selling for $650.00, and in New Jersey sell for $800.00, what are their respective interest rates? Describe the adjustments that you think will ensue.

Reference no: EM1311321

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