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One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 8.2% annual coupon bonds at their par value of $1,000. Today, the market interest rate

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 8.2% 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. $1,266.54
b. $1,262.73
c. $1,255.11
d. $1,251.30
e. $1,258.92

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