Transcribed image text: The following is a list of prices for $1000 par value zero-coupon bonds of various maturities. Maturity (Years) 1 2 Price of Bond $950 $850 Microsoft issues a 2-year bond with face amount of $1000 and annual coupon of $50 priced according to the interest rates implied by the above zero-coupon bonds. Calculate the adjustment to the book value in the second year. Transcribed image text: The following is a list of prices for $1000 par value zero-coupon bonds of various maturities. Maturity (Years) 1 2 Price of Bond $950 $850 Microsoft issues a 2-year bond with face amount of $1000 and annual coupon of $50 priced according to the interest rates implied by the above zero-coupon bonds. Calculate the adjustment to the book value in the second year