Time value-An Iowa state savings bond can be converted to $250 at maturity 5 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 3% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. Ignore taxes.

Question: The state must sell its bonds for $? (Round to the nearest cent.)