Smith is considering buying a 4-year annual coupon paying bond which pays coupons at 8% p.a. and is redeemed at 2 times its face value. He purchases this bond for $2,000 and is subject to income tax of 20% which is paid at the same time as the coupon payment. Find the face value of the bond. Duration 1 2 3 4 Spot Rate 5.0% 5.5% 6.0% 6.5% Smith is considering buying a 4-year annual coupon paying bond which pays coupons at 8% p.a. and is redeemed at 2 times its face value. He purchases this bond for $2,000 and is subject to income tax of 20% which is paid at the same time as the coupon payment. Find the face value of the bond. Duration 1 2 3 4 Spot Rate 5.0% 5.5% 6.0% 6.5%