Ten bonds are pruchased for $9.855.57. They are kept for 5 years and coupon payments are received at the end of each of the 5 years. Immediately following the owner's receipt of the 5th coupon payment. the owner sells each bond for $50 less than its per value. The bond coupon rate is 8%, and the owner's money yields a 10% annual return.

a) Draw a clear, labeled cash flow diagram of the entire bond transaction using dollar amounts where they are known and using $X to represent the face value of the bond.

b) Demtermine the face value of each bond.