A bond matures in 20 years at which time it pays the owner, Financial Management

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A bond matures in 20 years at which time it pays the owner

A bond matures in 20 years, at which time it pays the owner $1000. It also pays $70 at the end of each off the next 20 years. if similar bonds are currently yielding 7%, what is the market value of the bond?

A. under $1000

B. exactly $1000

C. over $1000

D. cannnot be determined from the information given

Please explain the answer

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Financial Management: A bond matures in 20 years at which time it pays the owner

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Financial Management: A bond matures in 20 years at which time it pays the owner

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