Suppose John purchased an annual coupon bond with a face value of $1000, a coupon rate of 8% and 10-year maturity. Four years after the purchase, immediately before the fourth coupon payment, he...

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Extracted text: Suppose John purchased an annual coupon bond with a face value of $1000, a coupon rate of 8% and 10-year maturity. Four years after the purchase, immediately before the fourth coupon payment, he decides to sell the bond. At that time, the interest rate has fallen to 6%. What is the fair value of the bond at that time (within $10)? 1098 1118 1138 1158 None of the above