Suppose a State of New York bond will pay $1,000 ten years from now.If the going interest rate on these 10-year bonds is 5.5%,how much is the bond worth today?

Name: Suppose a State of New York bond will pay $1,000 ten years from now.If the going interest rate on these 10-year bonds is 5.5%,how much is the bond worth today?
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The bond's present value is $585.43, which is calculated as follows:PV = FV / (1 + r)^nPV = $1,000 / (1 + 0.055)^10PV = $585.43

Suppose a State of New York Bond Will Pay $1,000