Question: Please show your work. It is claiming the answer is less than 1050.00 Thanks! Assets, Incorporated, plans to issue $6 million of bonds with a
Please show your work. It is claiming the answer is less than 1050.00
Thanks!

Assets, Incorporated, plans to issue $6 million of bonds with a coupon rate of 6.9 percent, a par value of $1,000, semiannual coupons, and 25 years to maturity. The current market interest rate on these bonds is 6.4 percent. In one year, the interest rate on the bonds will be either 9 percent or 5 percent with equal probability. Assume investors are risk-neutral. a. If the bonds are noncallable, what is the price of the bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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