Problem
A 10-year bond is originally offered by the government at $1000 with an annual return of 7%. Assuming that the bond currently has 3 years left before redemption and that the prevailing interest rate is 8% compounded annually, calculate its present value.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.