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One year ago Lerner and Luckmann Co. issued 20-year, noncallable, 6.5% semiannual coupon bonds at their par value of $1,000. Today, the market interest rate
One year ago Lerner and Luckmann Co. issued 20-year, noncallable, 6.5% semiannual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 8.5%. What is the current price of the bonds, given that they now have 19 years to maturity?
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