Suppose an Excxon Corporation bond will pay 4500 ten years f

Suppose an Excxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today?

Solution

Bond Value = Payment Value/ (1+Rate)^Years

Bond Value = 4500/ (1+7%)^10

Bond Value = $2,287.57

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10.

Correct option is > A. Flowcharting

Value stream mapping is flow chart method to improve and illustrate the steps required to deliver a product or services