What is the present value of the bond

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Reference no: EM132028717

1. In the one-period present-value equation, P = F/(1 + i), the term i is known as

future value

present value

the rate of discount

the discount factor

2. Consider a coupon bond that pays $350 every year and repays its principal amount of $5,000 at the end of four years. If the annual rate of discount is 6 percent, what is the present value of the bond?

$5,173.26

$4,542.33

$6,548,15

$5,534,18

Reference no: EM132028717

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