How much is the bond worth today

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Reference no: EM132929525

Problem 1: Suppose a government bond will pay RM1,000 three years from now. If the interest rate on 3-year government bonds is 4%, how much is the bond worth today?

Select one:

a. RM907.91

b. RM943.46

c. RM991.43

d. RM889.00

Problem 2: A project costs RM475 and has cash flows of RM100 for the first three years and RM75 in each of the project's last five years. What is the payback period of the project?

Select one:

a. 5.33 years

b. 5.00 years

c. 6.00 years

d. 4.75 years

Reference no: EM132929525

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