1. Use the following tables to calculate the present value of a $265,000 @ 5%, 5-year bond that pays $13,250 interest annually, if the market rate of interest is 10%. Round to the nearest dollar.

   Present Value of $1						Present Value of Annuity of $1
   Periods	5 %	6 %	7 %	10 %		Periods	5 %	6 %	7 %	10 %
   1	.95238	.94340	.93458	.90909		1	.95238	.94340	.93458	.90909
   2	.90703	.89000	.87344	.82645		2	1.85941	1.83339	1.80802	1.73554
   3	.86384	.83962	.81630	.75131		3	2.72325	2.67301	2.62432	2.48685
   4	.82270	.79209	.76290	.68301		4	3.54595	3.46511	3.38721	3.16987
   5	.78353	.74726	.71299	.62092		5	4.32948	4.21236	4.10020	3.79079
   6	.74622	.70496	.66634	.56447		6	5.07569	4.91732	4.76654	4.35526
   7	.71068	.66506	.62275	.51316		7	5.78637	5.58238	5.38929	4.86842
   8	.67684	.62741	.58201	.46651		8	6.46321	6.20979	5.97130	5.33493
   9	.64461	.59190	.54393	.42410		9	7.10782	6.80169	6.51523	5.75902
   10	.61391	.55839	.50835	.38554		10	7.72173	7.36009	7.02358	6.14457

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