Youre on vacation in a rather remote part of Florida and see an advertisement stating that if

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You’re on vacation in a rather remote part of Florida and see an advertisement stating that if you take a sales tour of some condominiums “you will be given $100 just for taking the tour.” However, the $100 that you get is in the form of a savings bond that will not pay you the $100 for 10 years. What is the present value of $100 to be received 10 years from today if your discount rate is 6 percent?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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