Problem
In December 2021 a company issued 40,000 bonds, borrowing $1,000 per bond, giving a total borrowing of $40 million over the next 20 years.
Each bond pays semiannual coupons, has a face value of $1,000 and a coupon rate of 6.5 percent. In December 2022 (exactly one year after issuance), calculate the value of the bond if the yield to maturity is now 5.8%.