Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding.

1. $55,541

2. $55,549

3. $55,554

4. $55,559

5. $55,562

6. $55,568

7. none of the above