Posted by Stacy on .
What is the present value of a $1000 bond which pays $50 a year for 10 years, starting one year from now? Assume interest rate is 6% per year, compounded annually

PreCalculus 
Reiny,
PV = 50 [ 1  1.06^10]/.06 + 1000(1.06)^10
= 926.40