Question $3$

$3$ pts

Swift Inc. issued a $20-$year, noncallable bond with a $7\mathrm{.}5\%$ annual coupon rate a year ago. Coupons are paid each quarter $(4$ times a year$).$ Face value of the bond is $$1,000.$ Today, the market interest rate on these bonds is $5\mathrm{.}5\%.$ What is the current price of the bonds, given that they now have $19$ years to maturity?

$$1,213\mathrm{.}48$

$$1,242\mathrm{.}03$

$$1,232\mathrm{.}15$

$$1,271\mathrm{.}32$

$$1,234\mathrm{.}83$