What is the present value of the bond redemption

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Novalite Co. has expansion opportunities. Its board of directors has determined that it can manage additional debt and so decided to finance some of these projects by issuing bonds. After consulting with its investment bank, Novalite believes that there are ample buyers for its bonds and the company intends to sell them in $10,000 denominations with the following characteristics:

Maturity: 7 years
Interest payments: Semi-annual
Coupon: 4%
The YTM on the current outstanding bonds is 6.05%

What is the present value of the bond redemption (return of capital at face value) to the nearest whole dollar?

Reference no: EM133275467

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