A Florida state savings bond pays $1,000 when it matures
June 7th, 2024
P4A.9 A Florida state savings bond pays $1,000 when it matures seven years from now. If the state bonds are to be competitive with U.S. savings bonds, which pay 2% interest compounded annually, at what price will the state’s bonds sell? (don’t need answer to this question; need answer to question below)P4A.10 Referring to Problem 4A.9, at what price would the bond sell if U.S. savings bonds were paying 4% interest compounded annually? Compare your answer to your answer to the preceding problem.