Determining the current price of the bonds


Grossnickle Corporation issued 20-year, noncallable, 7.9% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity? 1598.23, 1278.58, 1214.55, 1559.36, 1240.23

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Finance Basics: Determining the current price of the bonds
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