Answer:
The bond is worth $2,968 today
Explanation:
In order to know "how much is the bond worth today", we need to calculate the present value (PV) of the bond.
Google bond will pay $4,500 ten years from now, it means the future value (FV) is $4,500
Tenor is 10 years
Discounting rate is 4.25% pa
PV = FV/((1+ rate)^ tenor)= $4,500/(1+4.25%)^10 = $2,968
