Problem:
Twenty-five-year B-rated bonds of Katz Copying Machines were initially issued at par with a 12 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 10 percent. The bond has a par value of $1,000.
Required:
Question: Determine the price of the bonds with 15 years remaining to maturity.
Note: Please provide through step by step calculations.