A U.S. Government bond with a face amount of $10,000 with 8 years to maturity is yielding 3.5%. What is the current selling price?
+118673 I thought you needed another interest rate. A desired return. 
It seems to me that the price should still be $10000.
Let us know when you get your answer.
I am not at all sure that any one here can answer this question any better.
You say it is yeilding 3.5% is that per annum? When are the payments made?
Let us know when you find out the answer.
+394 U.S. Government bonds are sold at a discount and redeemed at maturity.
Par value * (1+APR)-Y Y = years to maturity
Present value = 10000 * (1.0350)-8
Present value = $7594.12
_7UP_
+118673 I do not know how US govt bonds work.
I assume the redepmtion value is the same as the face value.
Don't they pay any interest. That doesn't sound right.
------------
I can see what you have done SevenUp.
You have simply found the present value of $10000 given that the annual value is 3.5%.
Mmm okay.
