Fin419 Principles of Managerial Finance: P5–14 Present Value

Reminder: Please make sure to reword or paraphrase all written or essay answers as this tutorial has been used/submitted by a previous buyer already. Fin419 Principles of Managerial Finance P5–14 Present Value An Iowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption.