One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 8.8% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?

Select the correct answer.

a. $1,324.17
b. $1,313.89
c. $1,321.60
d. $1,319.03
e. $1,316.46

Answer rating: 100% (QA)

e 131646 Price of bond is the present value of cash flows f... View the full answer