An Indiana state savings bond can be converted to $100 at maturity six years from purchase. If

Question:

An Indiana state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds before redemption.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...