THE LOGOS CORPORATION IS PLANNING ON ISSUING BONDS THAT PAY NO INTEREST BUT CAN BE CONVERTED INTO $1,000 AT MATURITY, 7YEARS FROM THEIR PURCHASE. TO PRICE THESE BONDS COMPETITIVELY WITH OTHER BONDS OF EQUAL RISK, IT IS DETERMINED THAT THEY SHOULD YIELD 9

The Logos Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 9 percent, compounded annually. At what price should the Logos Corporation sell these bonds?