Suppose a Government of Canada bond promises to pay $1,000 five years from now.If the going interest rate on 5-year government bonds is 5.5%,how much is the bond worth today?

Name: Suppose a Government of Canada bond promises to pay $1,000 five years from now.If the going interest rate on 5-year government bonds is 5.5%,how much is the bond worth today?
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The bond is worth $765.13 today because the present value of $1,000 five years from now, discounted at 5.5%, is $765.13.

Suppose a Government of Canada Bond Promises to Pay $1,000