Bond

valuationzero

coupon)

The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into

$1,000

at maturity,

7

years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield

9

percent, compounded annually. At what price should the Latham Corporation sell these bonds?

The price of the Latham Corporation bonds should be

(Round to the nearest cent.)