Question: Dilbert,inc., planned to issue 3 - year, $ 1 , 0 0 0 face value bonds totaling $ 4 0 million next month. Thebonds have

Dilbert,inc., planned to issue 3-year, $1,000 face value bonds totaling $40 million next month. Thebonds have been printed with a 3% annual coupon rate. Since that printing, however, Moody'sdowngraded Dilbert's bond rating from AAA to A, and the bonds will have to be priced to yield buyers 3.5%. Determine the bond's price.

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