Cox Media Corporation

Cox Media Corporation pays an 11 percent coupon rate on debentures that are due in 10 years. The current yield to maturity on bonds of similar risk is 10 percent. The bonds are currently callable at $1,310. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds. Use Appendix B and Appendix D.

(a) Find the market value of the bonds using semiannual analysis. (Round “PV Factor” to 3 decimal places. Round your answer to 2 decimal places. Omit the “$” sign in your response.)
Price of the bond $

(b) Do you think the bonds will sell for the price you arrived at in part a?