Consider a bond issued by Toyota with a maturity date of $2020$ and a stated coupon of

$4\mathrm{.}35\%.$ In December $2015,$ with $5$ years left to maturity and $$1,000$ par value, investors

owning the bonds are requiring a $4\%$ rate of return. Calculate the value of the bond.

If the bond is selling in the market at $$1050,$ as an investor, should we invest in the

bond? Justify.

$(7$ marks$)$