It is now the year 2025. 10 years ago, MGM Resorts issued bonds with the following aspects: - $1.000 par value - $50 coupon paid semiannually (SA) - A 30-year maturity You followed the logic that "a casino can't go bankrupt" and decided to invest $10,000 into the MGM bonds based on their attractive 10% original issue yield ((550 coupon 2 coupons per year = $100 coupon per year / $1,000 par value = 10 or 10%). Like a young Professor Shelton would you panicked and sold the MGM bonds five years ago (in 2020). Five years later, the Coronavirus has fortunately long since been contained and vaccinated against and MGM has turned around their business with new management, updated casinos, and best of all added more 'Penn and Teller', 'Blue Man Group and Steve Aoki in residence. In response to these wonderful events the credit rating on MGM has gone from "CCC all the way up to 'A' and the yield-to-maturity on the bonds you purchased 10 years ago and sold five years ago is now 7% per year! Again, like a young Professor Shelton would you feel absolutely sick realizing that you panicked and sold the bond position at the worst possible time. However, curiosity overcomes you and you decide to go ahead and take what you learned in FIN 313 and value the bonds today. What is the fair price for the MGM bond today (20 years remaining to maturity, YTM of 7%. $50 coupons, semi-annual payment, round to the nearest dollar)? $1.411 $1,320 5823 $1,245