13. Five years ago Bacon Signs Inc. issued twentyfiveyear 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have fallen and the yield to maturity on the Bacon bonds is now 6%. Given this information, what is the price today for a Bacon Signs bond?

a. $914.41

b. $1,201.54

c. $1,229.40

d. $1,000

Answer: c

I would like to know why does the answer is C, NOT use excel function to calculate.