You have just won a $50,000 bond that pays no interest and matures in 20 years. If the discount rate is 10%, what is the present value of your bond?
A) $7,450
B) $8,175
C) $8,900
D) $1,490

Question

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The Answer of You have just won a $50,000 bond that pays no interest and matures in 20 years. If the discount rate is 10%, what is the present value of your bond?
A) $7,450
B) $8,175
C) $8,900
D) $1,490

You Have Just Won a $50,000 Bond That Pays No