One year ago Lerner and Luckmann Co$.$ issued $15-$year, noncallable, $7\mathrm{.}5\%$ annual coupon bonds at their par value of $$1,000.$ Today, the market interest rate on these bonds is $5\mathrm{.}5\%.$ What is the current price of the bonds, given that they now have $14$ years to maturity?

Question $23$Answer

a$.$

$$1,104\mathrm{.}62$

b$.$

$$1,077\mathrm{.}01$

c$.$

$$1,191\mathrm{.}79$

d$.$

$$1,132\mathrm{.}95$

e$.$

$$1,162\mathrm{.}00$