Suppose a Government of Canada bond promises to pay $1,000 five years from now.If the going interest rate on 5-year government bonds is 5.5%,how much is the bond worth today?

A) $765.13
B) $803.39
C) $843.56
D) $885.74

Government Bonds

Are debt securities issued by a government to support its spending, typically considered a low-risk investment.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Bond Worth

The current market value of a bond, reflecting investor perceptions of the issuer's creditworthiness and prevailing interest rates.