A Zero-Interest Bond Pays $100,000 in Seven Years A) $90,909
B) $68,301
C) $51,316
D) $30,000

Multiple Choice

A zero-interest bond pays $100,000 in seven years. What amount would you be willing to pay to acquire the bond today if you want to earn a return of approximately 10%? Use the present value of $1 table shown below. (Do not round any intermediary calculations, and round your final answer to the nearest dollar.)
Excerpt of Present Value of $1 Table
$$\begin{array} { | c | c | } \hline \text { Periods } & \mathbf { 1 0 } \% \\\hline 1 & 0.90909 \\\hline 2 & 0.82645 \\\hline 3 & 0.75131 \\\hline 4 & 0.68301 \\\hline 5 & 0.62092 \\\hline 6 & 0.56447 \\\hline 7 & 0.51316 \\\hline\end{array}$$

A) $90,909
B) $68,301
C) $51,316
D) $30,000