13. Assume that the current one-year spot rate is 6% and the forward rates for one year hence and two years hence are, respectively:

/1,2 = 9%

h.3 = 10%

What should be the market price of an 8% coupon bond, with a $1,000 face value, maturing three years from today? The first interest payment is due one year from today. Interest is payable annually.