Question - Fifteen years ago, Chemical Corporation sold a $400 million bond issue to finance the purchase of a new distribution center. These bonds were issued in $1,000 denominations with an original maturity of 30 years and a coupon rate of 12% with interest paid semiannually. Determine the value today of one of these bonds to an investor who requires a 14 percent return on these bonds. Why is the value today different from the par value?