Question 7 A S 10 000 bond has an interest rate of 6 per yea

Question 7 A S 10 000 bond has an interest rate of 6% per year payable quanthy The bond matures 15 years tom now At an interest rate of es per year compounded queedy i presene worth of the bond is represented by which of the equations below seectedAnswer O pWe 600PM. 8%, 15) + 10.000.PF-8%. 15) Corred Ansnet O FW: 150PA. 2%, 60) + 10,000(PE 2%, 60) Response Feedback incorrect

Solution

Yes you have submitted wrong Answer. The reason is there are 15(4)=60 quarters in 15 years and rate of interest quarterly is 8/4=2%.similarly 600/4=150