Question: PREPA is offering a $ 45 Bonus, payable semi-annually, for the next 20 years. The prevailing market interest rate is 8%. What is the value

PREPA is offering a $ 45 Bonus, payable semi-annually, for the next 20 years. The prevailing market interest rate is 8%. What is the value of the Bonus? Present value $ ____________ is sold with a premium or discount ______________ Please show the formula and the process for the present value and premium or discount!!!

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