Find new price of bonds if have nineteen years to maturity


Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?

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Finance Basics: Find new price of bonds if have nineteen years to maturity
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Now Priced at $5 (50% Discount)

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