The present value of the principal is $781.19, which represents the value today of the $1,000 principal value of the bond to be received in five years time.note: this method is also used to calculate the present value of strip bonds, which pay their face value at maturity and do not pay a regular income stream.the question is only asking you for the present value of the principal. to solve this question, your pmt entry should be $0 (you dont want to include the present value of the income stream in your calculation, so you set your pmt to $0).try the following:10 n2.5 i1,000 fv0 pmtcomp pv