How much is the bond worth today

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Reference no: EM131949682

1. Suppose an exxon corporation bond will pay $4,500 ten years from now if the going interst rate on safe 10 year bonds is 7.00% how much is the bond worth today?

2. Suppose the U.S Treasury offers to sell you a bond for $3,000. No Payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,100. What interest rate would you earn if you bought this bond at the offer price?

Reference no: EM131949682

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