To find the current value of a zero-coupon bond, you can use the formula:

$PV = \frac{FV}{(1 + r)^n}$

Where:

• $PV$ is the present value of the bond (what we're trying to find).
• $FV$ is the face value of the bond, which is $1,000.
• $r$ is the discount rate, which is 8% or 0.08.
• $n$ is the number of years until maturity, which is 6.

Substituting the given values into the formula:

$PV = \frac{1000}{(1 + 0.08)^6}$

Now, calculating the value:

$PV = \frac{1000}{(1.08)^6}$

$PV = \frac{1000}{1.586874322}$

$PV \approx 630.17$

So, the current value of the bond is approximately $630.17.

Would you like to see the detailed steps or have any questions?

Here are some related questions:

1. How would the bond's value change if the discount rate was 10%?
2. What happens to the bond's value as the time to maturity increases?
3. How does the face value of a bond impact its present value?
4. Can you explain the concept of a zero-coupon bond?
5. How does a zero-coupon bond differ from a regular bond?
6. What are some risks associated with investing in zero-coupon bonds?
7. How would inflation affect the real return on a zero-coupon bond?
8. Can zero-coupon bonds be a good option for retirement savings?

Tip: Always remember that the present value of a bond decreases as the discount rate increases.