Answer: Less than $5,000
Explanation:
The Bond described above is a discount bond. Discount bonds are bonds that sell below their par value because the market rate for the bond is higher than the coupon rate.
This happens when investors believe a bond to be riskier than the company says and so attach a higher return to it than its coupon rate. As a result, the price of the bond will be less than the par value because the higher market rate will discount the bond cashflows more than the coupon rate would.
