Question: One year ago Lerner and Luckmann Co . issued 1 5 - year, noncallable, 6 . 1 % annual coupon bonds at their par value

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.1% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?
Select the correct answer.
a. $1,055.31
b. $1,050.85
c. $1,048.62
d. $1,053.08
e. $1,057.54

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