Evaluating the current price of the bonds


Scenario: Grossnickle Corporation issued a 20-year, non-callable, 6.3% 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?

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Finance Basics: Evaluating the current price of the bonds
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