You have purchased a Treasury bond that will pay $10,000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875% per year, what is today's price (present value) for this bond?

A) $8,417
B) $8,500
C) $5,654
D) $10,000

Answer: C
Explanation: C) PV = = = $5,654
MODE = END
INPUT 15 3.875 ? 0 -10,000
KEY N I/Y PV PMT FV
CPT 5,654