Suppose the current market interest rate is 16% per year, annually compounded. What is the value of a bond with a face value of 1000 that pays coupon once every year with a coupon rate of 5% and has a three year maturity? Suppose that we observe 2 pure discount bonds with a face value of $1000. A one-year discount bond is priced at $920. A two-year discount bond is priced at $830. Consider an 6%, 2-year coupon bond. The face value of the coupon bond is F = $1000. The coupon is paid annually. What is the price of the coupon bond?