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On October 14, 2018 The Borrower Corporation is issuing a $1,000,000 bond paying 7% annual interest. The bond principal will be repaid on October 14,

On October 14, 2018 The Borrower Corporation is issuing a $1,000,000 bond paying 7% annual interest. The bond principal will be repaid on October 14, 2038. The market rate of interest for bonds in Borrower's risk category is 06%. Interest is paid semi-annually.

How much cash will the Borrower Corporation get on October 14, 2018 for issuing the bond? In other words what is the market price of the bond on October 14,2018. Show your work.

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