What is the annual return on the bond

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Reference no: EM13874722

1. The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is _____.

A. $2,500

B. $3,044

C. $6,516

D. $2,856

2. If a United States Savings bond can be purchased from $29.50 and has a maturity value of $1000 at the end of 25 years, what is the annual return on the bond?

A. 7%

B. 6%

C. 8%

D. 5%

Reference no: EM13874722

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