5 years ago,MGM Resorts issued bonds with the following aspects:

- $1,000 par value

-$50 coupon paid semiannually (SA)

-A 30-year maturity

You followed the logic that "a casino can't go bankrupt" and decided to invest $100,000 into the MGM bonds based on their attractive 10% original issue yield (($50 coupon * 2 coupons per year = $100 coupon per year / $1,000 par value = .10 or 10%).

However, it is now 5 years later, and you see that MGM's credit rating has fallen from ('BB') to 'CCC' and the firm is in dire straits. In fact, the current yield-to-maturity (YTM) on the MGM bonds you own is now 18%! At what price per bond (to the nearest dollar), can you expect to sell the bonds for today?

$1,411

$562

$872

$615