You have purchased a Treasury bond that will pay $10,000 to your newborn child in 15 years.If this bond is discounted at a rate of 3.875% per year,what is today's price (present value)for this bond?
A)$8,417
B)$8,500
C)$5,654
D)$10,000

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The Answer of You have purchased a Treasury bond that will pay $10,000 to your newborn child in 15 years.If this bond is discounted at a rate of 3.875% per year,what is today's price (present value)for this bond?
A)$8,417
B)$8,500
C)$5,654
D)$10,000

You Have Purchased a Treasury Bond That Will Pay $10,000