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Tacos Web company is planning to issue a bond worth $5,000,000 of 30 years on Jan...

Tacos Web company is planning to issue a bond worth $5,000,000 of 30 years on Jan 01, 1985. The bond has a coupon rate of 14% and coupon payment is due at the end of every year. The bond’s YTM at the time of issuance is 11%.

After 10 years of bond issuance an investor Paul has the opportunity to invest in the bond. YTM at that time is 13.5%.

REQUIRED: Calculate the maximum price Paul will be willing to pay for the bond.

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