The collateral on the bonds and source of cash flow for


In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds? (and source of cash flow for interest and principal? payments) consisted of future royalties from classic songs such as? "What's Going? On", and? "I Heard It Though The? Grapevine". The bond issue had a? $1,000 face value and a coupon rate of? 5%. If the bond matures in 26? years, pays semi-annual ?coupons, and the yield to maturity is? 6%, what will the bond sell? for? Calculate your answer to two decimal points.

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Finance Basics: The collateral on the bonds and source of cash flow for
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