Answer:
$ 6,990.21
Explanation:
The price of the one-year bond is its face value discounted using the present value formula below:
PV=FV/(1+r)^n
PV is the price of the bond which is unknown
FV=face value=$7000
r=0.14%
n=1 year
PV=$7000/(1+0.14%)^1
PV=$7000/1.0014
PV=$6,990.21
