The Going to the Sun Highway in Glacier National Park - located in northwestern Montana - is one of the most spectacular drives in North America. Unfortunately the road needs to be resurfaced due to many harsh winters. The State of Montana has decided to sell state bonds to cover the needed repairs, A Montana state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must Montana sell its bonds? (Assume no cash payments on savings bonds prior to redemption.)

Hint: this IS a time value problem - draw a time line - it will help!