Final answer:
The market price of the bond is $869.67.
Step-by-step explanation:
The market price of a bond is determined by its yield to maturity and the interest rate environment. In this case, Gugenheim, Inc. offers a 7% coupon bond with an annual yield to maturity of 5.85% and a maturity date of 9 years. To calculate the market price of the bond, you can use the present value formula:
PV = C * (1 - (1 + r)^-n) / r + F * (1 + r)^-n
where PV is the present value, C is the coupon payment, r is the yield to maturity, n is the number of periods, and F is the face value of the bond. Plugging in the given values, we find that the market price of the bond is $869.67.