A bond with a face value of $10,000 pays interest of 2% per year. This bond will be redeemed at its face value at the end of seven years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 4% yield is desired ?

( Round to the nearest dollar )

More Info N 1 2 Discrete Compounding: 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find To Find P To Find To Find P To Find A Given Given Given A Given Given F FIP PE RA PA AIR 1.0200 0.9804 1.0000 0.9804 1.0000 1.0404 0.9612 2.0200 1.9416 0 4950 1.0612 0.9423 3.0604 28839 0.3268 10824 0.9238 4 1216 3.8077 0.2426 1.1041 0.9057 5:2040 4.7135 0.1922 1 1262 0.8880 6 3081 56014 0.1585 1.1487 0.8706 7.4343 6.4720 0.1345 1.1717 08535 8.5830 7 3255 0.1165 1. 1951 0.8368 9.7546 8. 1622 0 1025 1 2190 0 8203 10.9497 8.9826 0.0913 Capital Recovery Factor To Find Given P AIP 1.0200 0.5150 0.3468 0.2626 0 2122 0.1785 0.1545 0.1365 0 1225 0.1113 4 5 6 7 9 10 Print Dorie * More Info - Z- NOO Discrete Compounding1% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIE HA WA AIF 1.0400 0.9615 1.0000 0.9615 1.0000 1.0816 0.9246 2.0400 1.8861 0.4902 1.1249 0.8890 3.1216 2.7751 0.3203 1.1699 0.8548 4.2465 3.6299 0.2355 12167 0.8219 5.4163 4.4518 0.1846 1 2653 0.7903 6.6330 52421 0.1508 1.3159 0.7599 7.8983 6.0021 0.1266 1 3686 0.7307 9.2142 6.7327 0.1085 1.4233 0.7026 10.5828 7 4353 0.0945 1.4802 0.6756 12.0061 8.1109 0.0833 Capital Recovery Factor To Find A Given P AIP 1.0400 0.5302 0.3603 0.2755 0 2246 0.1908 0.1666 0.1485 0.1345 0 1233 10 Print Done