A 15 year bond issued today by Carris, Inc. has a coupon rate of 11%, a required return of 7% and a face value of $1000. The bond will be sold 6 years from now when interest rates will be 7%. What is the beginning value of the bond when it is issued (to the nearest dollar)?
Answer
$1,282
$1,000
$1,067
$1,364