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A bond was issued with a face value of $400,000 and a coupon rate of 0.15% per quarter. Payments are made on a quarterly basis.

A bond was issued with a face value of $400,000 and a coupon rate of 0.15% per quarter. Payments are made on a quarterly basis. This bond is bought in the bond market before maturation, and there are only 16 payments remaining. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 8% compounded quarterly on your money? (10 Marks)

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