A 20-year corporate bond has a par value of $2000 and a 6% annual coupon rate. Assume that your required rate of return is 10% and that you plan to hold onto this bond for 8 years. You and the market have expectations that in 8 years the yield-to-maturity for this bond (or another bond with similar risk and maturity) will be 8%. How much are you willing to pay for this bond today? (Hint: You will need to know how much you can sell the bond for at the end of 8 years. Then you must use this value to determine how much you would be willing to pay for it today! So, Step 1 is to find the value of the bond in 8 years -> N=12,... Basically, suppose you are buying the bond today with the expectation of selling it in 8 years. And, you want to earn 10% APR on this investment/transaction. So, if you can figure out how much you should be able to sell it for in 8 years, then you can figure out how much to pay for it today to make sure you get your 10%.)