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Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. If the interest rate is 6 percent, you will buy the bond if its price today is no greater than.

Respuesta :

The price you would buy the bond today will not be greater than  $7,920.94.

What is the price of the bond?

In order to determine the price of the bond, the present value of the bond has to be determined. The present value is the sum of discounted cash flows. It is derived by discounting the amount expected to be received in the future by the interest rate.

Present value = ($10,000 / 1.06^4) = $7,920.94

To learn more about present value, please check: https://brainly.com/question/26537392

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