Leggio Inc. issued bonds with a 30-year maturity one year ago. The bonds have a 6% coupon, make one payment per year, and sold at their $1,000 par value at issue because the going market rate at the time was 6%. Now, one year later, the market rate has declined from 6% to 5%. At what price should Leggio's bonds now sell?

a. $1,000.00

b. $1,067.54

c. $1,151.41

d. $1,209.10

e. $ 911.22

Answer rating: 100% (QA)

c 11... View the full answer