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Caldwell, Inc. sold an issue of 3 0 - year, $ 1 , 0 0 0 par value bonds to the public. The bonds carry

Caldwell, Inc. sold an issue of 30-year, $1,000 par value bonds to the public. The bonds carry a 10.85% coupon rate and pay interest semiannually. It is now 12 years later. The current market rate of interest on the Caldwell bonds is 8.45%. What is the current market price (intrinsic value) of the bonds? Round off to the nearest $1.
$1,177
$751
$1,260
$1,220
0$976

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