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Sammys Incorporated issued 12 year bonds on January 1, 2015. The bonds had a face value of $1000, and paid a coupon of 7 percent.

Sammys Incorporated issued 12 year bonds on January 1, 2015. The bonds had a face value of $1000, and

paid a coupon of 7 percent. On the date the bonds were issued, the market rate was 5 percent.

Question: How much money did Sammy receive from selling the bonds (in other words, what was the price of the bonds) ? (Show your work)

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