Question

Iron Maiden became the first​ heavy-metal band to sell bonds when it arranged a​ $30 million deal in February 1999. The collateral on the bonds​ (and source of cash flow for interest and principal​ payments) consisted of future royalties from the​ band's albums like​ "The Number of the​ Beast." Each bond in the issue had a face value of

​$1,000​,

a term of

22

years and paid semiannual coupons at the rate of

9​%.

The yield to maturity on the bond was

8​%.

At what price did each of the bonds​ sell?

Answer 1

Sell Price of Bond: