Answer:
The present value of the bond is $747.25
Explanation:
In order to find the present value of a bond we need to know its future value, its years to maturity, its yield to maturity and its payments. The question tells us that is a discount bond which means it has 0 payments and it tells us the other 3 variables. We will put these variables in a financial calculator in order to find the present value.
FV= 1000
N=5
PMT=0
I=6
Compute present value =747.25
