Fresh Water, Inc. Executed the sale of a series of 30-year bonds with a par value of $1,000 to the general public. The bonds offer an annual coupon rate of 10.63 percent, with interest payments made on a yearly basis. The prevailing market interest rate for Fresh Water, Inc. as of the present. bonds is 12.92 percent. May I inquire about the prevailing market price of the bonds?

Please express the value to two decimal places.

Answer rating: 100% (QA)

To calculate the prevailing market price of the bonds we can use the formula for calc... View the full answer