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Please explain how to calculate the numbers in the Fair Value column. Thank you! Annual contract rate Annual market rate Payments within yr Years to

Please explain how to calculate the numbers in the Fair Value column. Thank you!

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Annual contract rate Annual market rate Payments within yr Years to maturity 9% 7% 1 3 Bond Cash Interest Premium Amortized Date Received Revenue Amortized Cost 1/1/2019 1,052,486 1/1/2020 90,000 73,674 16,326 1,036,160 1/1/2021 90,000 72,531 17,469 1,018,691 1/1/2022 90,000 71,308 18,692 1,000,000 Par (face) value Issue price $1,000,000 $1,052,486.32 Fair Value 1,052,486

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