A Bond Promises to Pay $500 in One Year and $10,500

Multiple Choice

A bond promises to pay $500 in one year and $10,500 in two years. What is the correct way to find the present value of this bond?

A) $500(1 + r) + $10,500/(1 + r) ²
B) $500/(1 + r) + $10,500/(1 + r) ²
C) $11,000/(1 + r) ²
D) $500(1 + r) + $10,500(1 + r) ²