Apple recently issued a zero coupon bond. The zero coupon bond has a face value of $1 billion and matures in six years. Assume that when the bonds were sold to the public, the annual market rate of interest was 3 percent. Required: A) How much did Apple receive when it issued the bonds with a face value of $1 Billion? Note: Round your PV Factors to 5 decimal places. Enter your answer as a whole dollars rounded to nearest whole number.

The following solution is INCORRECT: PV = $1 billion / (1 + 0.03)^6 PV = $853,120,724.06