Question: 7 . A ( $ 1 , 0 0 0 ) par value bond with ( 8 % )

7. A \(\$ 1,000\) par value bond with \(8\%\) annual coupons matures at par in 4 years. The following are given as the one-year forward rates for year \( n+1\)(i.e., the one-year effective rates during year \( n+1\)): Scenario X and Scenario Y have an equal probability of occurring.
Calculate the expected present value of the bond payments.
7 . A \ ( \ $ 1 , 0 0 0 \ ) par value bond with \

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