Stan Moneymaker has the opportunity to purchase a certain U.S. Treasury bond that matures in eight years and has a face value of $10,000. This means that Stan will receive $10,000 cash when the bond’s...

Stan Moneymaker has the opportunity to purchase a certain U.S. Treasury bond that matures in eight years and has a face value of $10,000. This means that Stan will receive $10,000 cash when the bond’s maturity date is reached. The bond stipulates a fixed nominal interest rate of 8% per year, but interest payments are made to the bondholder every three months; therefore, each payment amounts to 2% of the face value. Stan would like to earn 10% nominal interest (compounded quarterly) per year on his investment, because interest rates in the economy have risen since the bond was issued. How much should Stan be willing to pay for the bond?