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In September 2000 the MF Group arranged a bond issue for the estate of the late HARRY. The collateral on the bonds (and source of

In September 2000 the MF Group arranged a bond issue for the estate of the late HARRY. The collateral on the bonds (and source of cash flow for interest and principal payments) consisted of future royalties from classic songs such as "WATERMELON," and "ADORE YOU." The bond issue had a $1,000 face value and a coupon rate of 5%. The bond matures in 26 years, pays semiannual coupons, and the yield to maturity is 6%. It is now September 2015, and you want to sell the bond. What price will the bond sell for?

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