The current on the run yields for the Corporation are as follows:

maturity(years)	yield to maturity(%)	spot rate %	Market value
1	2.00	2.000	1,000
2	4.00	4.041	1,000
3	6.00	6.169	1,000

Assume that each bond is an annual-pay bond. Each bond is trading at par, so its coupon rate is equal to its yield to maturity

You compute the series of one-year forward rates and find they are:

Year	One-Year Forward Rate (%)
1	2.000%
2	6.122%
3	10.558%

a. Using the rates given to you, what would be the value of a 8.00% 3-year to maturity option free bond of the corporation