How would you calculate the present value of a bond that pays \$500 annually for 10 years and \$5,000 at maturity, given a market interest rate of 5%?

Use the annuity table for both interest and principal payment calculations.

Use the annuity table for interest payments and lump sum table for principal.

Use the future value table for both interest and principal payment calculations.

Use the lump sum table for both interest and principal payment calculations.