Question # 7

Nicklebackk Corp. issued 25-year, noncallable, 8.3% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.9%. What is the current price of the bonds, given that they now have 24 years to maturity?

a. $1,304.01

b. $1,309.74

c. $1,372.94

d. $1,315.14

e. $1,366.04