1) Determine the amount you would be wiling to pay for a $1,000 par value bond paying $70 interest each year (annual) and maturing in 10 years, assuming you wanted to earn a 10% rate of return. Fill out the table below.

1) Determine the amount you would be wiling to pay for a S1,000 par value bond paying $70 interest each year (annual) and maturing in 10 years, assuming you wanted to earn a 10% rate of return. Fill out the table below. 10 yearBond > 10.0000% Present Value of Cash Flow 1070 Time nterest Maturity Payment Total Cash Flow 70.00 Payment 70 70 70 70 70 70 70 70 70 70 4 5 6 10 Total present value_.--..__-.> I would be willing to pay the present value above $