5. With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used
to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue
with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.6% and will mature on this day 26
years from now. The yield on the bond issue is currently 6.2%. At what price should this bond trade today, assuming a face
value of $1,000 and annual coupons?
The price of the bond today should be $
(Round to the nearest cent.)