Cox Media Corporation pays an 11 percent coupon rate on debentures that are due in 10 years. The current yield to maturity on bonds of similar risk is 8 percent. The bonds are currently callable at $1110. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds.

1. Find the market value of the bonds using semiannual analysis.
2. Do you think the bonds will sell for the price you arrived at in part a?