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You just turned 22 today. You've just been told by Santa Claus that since you did...

You just turned 22 today. You've just been told by Santa Claus that since you did so well in your Finance class, on your 30th birthday, you will inherit a bond with a face value of $150,000. The bond pays you annual coupon payments of $1000 until then. Assuming a 3% annual yield, how much is your inheritance worth today?

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Answer #1

We use a financial calculator estimate the PV of the Bond,
Given FV = 150,000, PMT = 1000, I/Y = 3%, NPER = 8 Compute PV = 125,431.08

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