Gonzalez Electric Company has outstanding a 10 percent bond issue with a face value of $1,000 per bond and three years to maturity. Interest is payable annually. The bonds are privately held by Suresa

Gonzalez Electric Company has outstanding a 10 percent bond

issue with a face value of $1,000 per bond and three years to maturity.

Interest is payable annually. The bonds are privately held by Suresafe

Fire Insurance Company.

Suresafe wishes to sell the bonds, and is negotiating with another

party. It estimates that, in current market conditions, the bonds should

provide a (nominal annual) return of 14 percent. What price per bond

should Suresafe be able to realize on the sale?