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Question 1 [5 pts] Suppose you are considering purchasing a bond issued by Pacific Energy Corp (PEC). The PECs bond has 15 years to maturity

Question 1 [5 pts]

Suppose you are considering purchasing a bond issued by Pacific Energy Corp (PEC). The PECs bond has 15 years to maturity and pays an annual coupon of $60 with a face value of $1,000. If the market commands a yield to maturity (YTM) of 6% for other bonds with a similar risk and maturity, how much would you be willing to pay for the PECs bond?

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