Question 8 (10 points): To join into a community, an Katty must first purchase a membership bond for $20,000. In addition, monthly membership dues are $300. Suppose an individual wants to put aside a lump sum of money now to pay for her basic membership expenses (including the $20,000 bond) over the next 30 years. She can earn an APR of 6%, compounded monthly, on her investments. What amount must this person now commit to the membership? a good example of present worth. The commercial value of a bond is the PW of all future net cash flows expected to be received - the period dividend [face value (Z) times the bond rate (r) ], and the redemption price (C), all discounted to the present at the bond's yield rate, i%. VN=C(P/F,i%,N)+rZ(P/A,i%,N) (face value Z, disposal price C, bond rate (nominal interest) r, Number of interest period N, bond yield rate i, Value (price) of bond Vn )