A bond pays $100 at the end of each year for five years,plus an additional $1,000 when the bond matures at the end of five years.What is the most you would be willing to pay for this bond if your opportunity cost of funds is 6 percent?

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The Answer of A bond pays $100 at the end of each year for five years,plus an additional $1,000 when the bond matures at the end of five years.What is the most you would be willing to pay for this bond if your opportunity cost of funds is 6 percent?

A Bond Pays $100 at the End of Each Year