What is the present value of a 10-year, pure discount bond paying
$1,000 at maturity if the appropriate interest rate is:
a. 5 percent
b. 10 percent
c. 15 percent

"A pure discount bond makes a single payment at the maturity date of the bond."

"Pure Discount Bond" http://www.econmodel.com/classic/terms/purediscountbond.htm

So, we discount the $1,000 payment in 10 years by the various interest
rates using the formula:  P = F [1/(1+i)^n] where n is 10 and i is the
various interest rates.

a. 613.91
b. 385.54
c. 247.18

The calculator at:  "Mortgage/Bond Calculator"
http://www.econmodel.com/classic/calculators/pv1.php can be used to
perform this calculation.  It has instructions for dealing with pure
discount bonds.

Sincerely,

Wonko