You have two bonds, both with a face value of $7,000 . One of them matures one year from today, while the other matures one year after that. If the interest rate is 8 percent (0.08) per year, what is the difference in value between the two bonds?

a. $480.11
b. $578.52
c. $317.46
d. zero
e. $925.92


A

Economics

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