Question
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds(and source of
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds(and source of cash flow for interest and principalpayments) consisted of future royalties from classic songs such as"What's GoingOn", and"I Heard It Though TheGrapevine". The bond issue had a$1,000 face value and a coupon rate of5%. If the bond matures in 26years, pays semiminus
annual coupons, and the yield to maturity is6%, what will the bond sellfor? Calculate your answer to two decimal points.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
