Pacific Western Corporation pays a 10 percent coupon rate on debentures due in 20 years. The current yield to maturity on bonds of similar risk is 8 percent. The bonds are currently callable at $1,170. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds. Assume the par value of the bonds is $1,000. a. Find the theoretical market value of the bonds using semiannual analysis. (Use a Financial calculator to arrive at the answer. Round the final answer to 2 decimal places.)

Price of the bond $