Answer:
$80,757,600
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 5.9% ÷ 2 = 2.95%
NPER = 18 years × 2 = 36 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value would be $351.12
Now the approximate total money would be
= Number of issued zero coupon bonds × present value
= 230,000 bonds × $351.12
= $80,757,600
