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Grossnickle Corporation issued 20-year, noncallable, 9.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these

Grossnickle Corporation issued 20-year, noncallable, 9.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 7.2%. What is the current price of the bonds, given that they now have 19 years to maturity?

a. $1,311.27
b. $1,245.26
c. $1,234.19
d. $1,303.84

e. $1,239.92

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