$1,233.79 was these bonds sell for today or Present value of Bonds = $1,233.79.
How to calculate Present value?
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Present value takes the future value and applies a discount rate or the interest rate that could be earned if invested.
To calculate present value,
Future value (FV) = $1,000
Interest = 7%
So, Payment (PMT) = $1,000 × 7% = $70
Rate of return (rate) = 5%
Time period (N per) = 18 years
present value = PV = FV/(1+i)^n
Present value of Bonds = $1,233.79
To know more about present value, refer:
brainly.com/question/17322936
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