Problem:
Morning Star Inc. sold an issue of 30-year, $1,000 par value bonds to the public. The bonds have a 14.6% coupon rate and pays interest annually. It is now 7 years later. The current market rate of interest of the Morning Star INc. bonds is 11.7%.
Requirement:
Question: What is the current market price (intrinsic value) of the bonds?
Note: Could someone please give me a step by step solution?