A Flonda state savings bond pays $3.000 when at matures 12 years from now, but it makes no other payments if the state bonds are to be competitive with US savings bonds, which pay 11% interest compounded annually, at what price will the state's bonds sel? At what price would the bond selt US savings bonds were paying 12% interest compounded annually? Compare your answers US savings bonds were paying 11% interest compounded annually, the current price, PV, of the state bond is (Round to the nearest cent)
A Flonda state savings bond pays $3.000 when at matures 12 years from now, but it makes no other payments if the state bonds are to be competitive with US savings bonds, which pay 11% interest compounded annually, at what price will the state's bonds sel? At what price would the bond selt US savings bonds were paying 12% interest compounded annually? Compare your answers US savings bonds were paying 11% interest compounded annually, the current price, PV, of the state bond is (Round to the nearest cent)
Chapter21: International Cash Management
Section: Chapter Questions
Problem 1IEE
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