1 suppose you have 1000 and plan to purchase a 4-year, Ask an Expert

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1. Suppose you have $1000 and plan to purchase a 4-year certificate of deposit (CD) that pays 3% interest, compounded annually. How much will you have when the CD matures?

A. 1124.86

B. 1125.51

C. 885.29

D. 1360.49

2. Suppose a U.S. government bond promises to pay $2254.73 four years from now. If the going interest rate on 4-year government bonds is 5%, how much is the bond worth today?

A. 2147.36

B. 1766.64

C. 1854.97

D. 1853.22

E. 1540.01

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Financial Management, Finance

Category:- Financial Management
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