If we were to value this bond at a 4% discount rate, the present value would jump to $12,500 (PV = $500 ÷ 0.04). If we valued it with a 10% discount rate, the present value would fall to $5,000 ...

Finally, add up the calculated present values to find the total present value of your investment: Total PV = PV1 + PV2 + PV3 = $952.38 + $1,814.06 + $2,579.71 = $5,346.15. Conclusion: Calculating the ...

To calculate the present value of any cash flow, you need the following formula: Present value = expected cash flow ÷ (1 + discount rate)^number of periods. Year one.

In the case of a T-bill, we know our purchase price, or present value, its face value or future value, and how long until it matures. For short-term Treasuries, this duration could be 30 to 182 ...