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Two-years ago, Trans-Siberian Airlines sold a $950 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1000 denominations

Two-years ago, Trans-Siberian Airlines sold a $950 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1000 denominations with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of these bonds to an investor who requires a 14% rate of return on these securities.

$626 $463 $897 $270

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