Problem: On December 31, 2004, $710,000 of 4% bonds were issued. The market interest rate at the time of issuance was 7%. The bonds pay interest on June 30 and December 31 and mature in 20 years.
Required:
- Compute the selling price of a single $1,000 bond on December 31, 2004.
Note: Round all intermediate calculations to three decimal places, and round your final answer to the nearest cent.