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Netflix received a credit rating of Ba 3 from Moody s . Debt obligations from Netflix are judged to have speculative elements and subject to

Netflix received a credit rating of Ba3 from Moodys. Debt obligations from Netflix are judged to have speculative elements and subject to substantial credit risk. They decide to issue a $1,000 face value corporate bond with a coupon rate of 7.625% p.a. paid quarterly that matures 5.5 years from today. The return on a bond with the same rating is 6.5% p.a., on the market at present. What would be the current market value of a Netflix bond?

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