The present discounted value (PDV)of $1 paid one year from now is $1/(1+R),where R is the interest rate. The PDV of $1 paid n years from now is $1/(1+R)". A bond is a contract in which a lender agrees to pay the bondholder a stream of money❑ The present discounted va1ue (PDV) of $1 paid one year from now is $1/(1 + R), where R is the interest rate. The PDV of $1 paid n years from now is $1/(1 + R)n . ❑ A bond is a contract in which a lender agrees to pay the bondholder a stream of money