Question: Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 4 percent coupon, pay interest semiannually, and mature in 14.5 years.

Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 4 percent coupon, pay interest semiannually, and mature in 14.5 years. What is the current price of these bonds if the yield to maturity is 5.48 percent? (5 points)

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