Answer the following questions. Table 6-4 or Table 6-5.

Note: Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.

Required:

Mario bought a bond with a face amount of $1,000, a stated interest rate of 8%, and a maturity date 12 years in the future for $982. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 6%. What is the market value of the bond today?

Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Table 6-4: Factors for Calculating the Present Value of $1