Cox Media Corporation pays a coupon rate of 9 percent on debentures that are due in 25 years. The current yield to maturity on bonds of similar risk is 6 percent. The bonds are currently callable at $1,300. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. Find the market value of the bonds using semiannual analysis