A Zero-Interest Bond Pays $200,000 in 10 Years A) $120,000
B) $164,386
C) $134,594
D) $135,112

Multiple Choice

A zero-interest bond pays $200,000 in 10 years. What amount would you be willing to pay to acquire the bond today if you want to earn a return of approximately 4%? Use the present value table of $1 provided. (Do not round any intermediary calculations, and round your final answer to the nearest dollar.)
Excerpt of Present Value of $1 Table
$$\begin{array} { | c | c | } \hline \text { Periods } & \mathbf { 4 } \% \\\hline 1 & 0.96154 \\\hline 2 & 0.92456 \\\hline 3 & 0.88900 \\\hline 4 & 0.85480 \\\hline 5 & 0.82193 \\\hline 6 & 0.79031 \\\hline 7 & 0.75992 \\\hline 8 & 0.73069 \\\hline 9 & 0.70259 \\\hline 10 & 0.67556 \\\hline\end{array}$$

A) $120,000
B) $164,386
C) $134,594
D) $135,112