The purpose of this calculation question is for you to compute the fair value of the financial liabilities of XYZ Company.

XYZ Company has only 1 financial liability. It is a non-callable publicly traded bond. Here are your facts to input into this question:

• Maturity value of the bond = $260,000,000
• Coupon Rate for the bond is 5.38% paid semi-annually.
• Bond matures on the last day of the firms financial year.
• Last Financial Year end the yield to maturity was 4.80% based on periodic compounding (not EAR)
• Last Financial Year end bond had exactly 18 years to maturity
• This Year Financial Year end the yield to maturity demanded by the market is 4.30% (based on doubling the periodic rate)

Required: Compute the fair value of the bond to be reported on this years balance sheet. Round to the nearest dollar and do NOT include the dollar sign in your response.