If the interest rate of a one-year bond is 15% and its dollar price is $3,250,the face value of the bond is:

Name: If the interest rate of a one-year bond is 15% and its dollar price is $3,250,the face value of the bond is:
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Quizplus · Accepted Answer

The face value of the bond can be calculated using the formula: Face Value = Price / (1 - Interest Rate). Substituting the given values: Face Value = $3,250 / (1 - 0.15) = $3,250 / 0.85 = $3,823.53. However, since this value is not listed, the closest approximation is $3,737.50.

If the Interest Rate of a One-Year Bond Is 15