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Calculate the fair market value of a 5-year bond that was issued with a face value of $1,000 and a coupon rate of 2% given

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Calculate the fair market value of a 5-year bond that was issued with a face value of $1,000 and a coupon rate of 2% given the different interest rates shown in the table that follows. What do your calculations indicate about the relationship between current interest rates and the value of bonds? (Round answers to 2 decimal places, eg. 52.25.) Face Value Current Interest Rate Payment Maturity Fair Market Value $1,000 1% $20 5 $ 2% $20 5 $1,000 $ 3% $20 5 $1,000 $ $1,000 4% $20 5 $ $ $1,000 5% $20 5 6% $1,000 $20 5 $ $1,000 7% $20 5 8% $20 5 $1,000 $ $ $ $ $1,000 9% 5 $20 5 $1,000 $20 10%

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