Your rich uncle has just given you a high school graduation present of $1,300,000. The present, however, is in the form of a 34-year bond with an annual interest rate of 4.7% compounded annually. The bond says that it will be worth $1,300,000 in 34 years. What is this gift worth at the present time? (Round your answer to the nearest cent.)

Your rich uncle has just given you a high school graduation present of $1,300,000. The present, however, is in the form of a 34-year bond with an annual interest rate of 4.7% compounded annually. The bond says that it will be worth $1,300,000 in 34 years. What is this gift worth at the present time? (Round your answer to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 18P

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