Helen Martin is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 8.5 percent. Assume annual coupon payments. What is the current value of this bond?

Zowns a disability income policy with a 30-day elimination period. z contracts pneumonia that leaves him unable to work from january 1 until january 15. z then becomes disabled from an accident on february 1 and the disability lasts until july 1 the same year. z will become eligible to receive benefits starting on