You recently inherited some money and have the opportunity to invest
Question: You recently inherited some money and have the opp…
You recently inherited some money and have the opportunity to invest it in a government bond which will pay you $55,000 when it matures in 10 years. The bond has an interest rate of 5%, compounded quarterly. Assuming there are no sales or transaction costs, how much would you being willing to pay to purchase the bond, and why?