With celebritybonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.5% and will mature on this day 22 years from now. The yield on the bond issue is currently 6.4%. At what price should this bond tradetoday, assuming a face value of $1000 and annualcoupons?

The price of the bond today should be $