Your parents have discovered a $1,000 bond at the bottom of their safe-deposit box. The bond was given to you by your late great-aunt Hilda on your fifth birthday. The bond pays interest at a rate of 6 percent per annum, compounded annually. Interest accumulates and is paid at the time the bond is redeemed. You are now 25 years old. What is the current worth of the bond (principal plus interest)? Use Table I or a financial calculator to answer the question. Round your answer to the nearest dollar.

Your parents have discovered a $1,000 bond at the bottom of their safe-deposit box. The bond was given to you by your late great-aunt Hilda on your fifth birthday. The bond pays interest at a rate of 6 percent per annum, compounded annually. Interest accumulates and is paid at the time the bond is redeemed. You are now 25 years old. What is the current worth of the bond (principal plus interest)? Use Table I or a financial calculator to answer the question. Round your answer to the nearest dollar.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 18P

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