Your company wants to pay off some long-term debt, so you decide to buy back some conventional 10-year bonds that you issued 8 years ago. The face value of the bonds is $1000, and the bonds were issued at a 8% coupon rate (interest rate).

Currently, other companies with the same risk profile as your company are offering new 2-year bonds at an interest rate of 10%. Assume that you are at the start of year 9, i.e., the 8^th interest payment has been made. What is a fair offer to buy back the bonds?