An Indiana state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds are to be competitive with U.

An Indiana state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds before redemption.