(Solution) - You are about to purchase a 1 000 face value bond -(2025 Original AI-Free Solution)

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You are about to purchase a $1,000 face value bond (today, October 23, 2011) which currently has 7 years to maturity (so the maturity date is 10/23/2018). The coupon, or interest, payments on this particular bond are $75 per year. If current interest rates (or the yield to maturity) on a security of identical risk and maturity as this particular bond are 9 percent annually (rd = 9%), how much will you have to pay for this bond today (VB on 10/23/2011)?