Please answer the following question showing all steps (please draw out the cash flow diagram and write out whatever formulas you use, definining the variables within the formulas). DO NOT just write an excel statement that calculates it, thank you.

9. Sam has the opportunity to purchase a U.S. Treasury bond that matures in eight years and has a face value of $10,000. This means that Sam will receive $10,000 cash when the bond's maturity date is reached. In addition, the bond stipulates a fixed nominal interest rate of8% ofthe face value. The interest payments are made to the bondholder every three months so each payment amounts to 2% of the face value. He would like to earn 10% interest compounded quarterly on his investment because interest rates in the economy have risen since the bond was issued. How much should Sam be willing to pay now for the bond? Draw a cash low diagram and then solve