Bonds that mature in 10 years were recently issued by Stern glass Inc. They have a future (or maturity) value of $1,000 (so FV = $1,000) and they pay an annual coupon of 5.5% based on FV = $1,000.If the current market interest rate is 7.0% (meaning r = 7%), at what price should the bonds sell?

Answer rating: 100% (QA)

A classic bond pricing problem We can use the present value formula to calcu... View the full answer