1 - San Francisco State University
direction with one another. Compounding essentially means earning interest only on principal and . not. on past interest. 8. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? a. $585.43. b. $614.70. c. $645.44. d. $677.71. e. $711.59. 9. ................
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