If the market interest rate is 10%, then the present-day value of a 1-year, $1000-face-value discount bond with no default risk is
A) $900
B) $909
C) $1,100
D) $10,000
Answer: B
If the market interest rate is 10%, then the present-day value of a 1-year, $1000-face-value discount bond with no default risk is
A) $900
B) $909
C) $1,100
D) $10,000
Answer: B