Question $24$

Your financial advisor is offering you an opportunity to invest in Corporate Bonds. Since you are very

interested in diversifying your portfolio with some fixed income investment, you are seriously considering

this offer. The bond matures in $16$ years, yields $8\mathrm{.}88\%$ and makes coupon payments of $11\%.$ If the par

value equals $$1,000,$ what is the most you should be willing to pay for each bond? Round your answer to the

nearest penny.