Question 10 Assume a $1,000 face value bond has a coupon rate of 6.1 percent paid semiannually and has an eight-year life.

A) If investors are willing to accept a 10.8 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.)

Present value= $____