Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12 percent yield. After 10 years, the bonds have been upgraded to Aa2. Such bonds are currently yielding 16 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity.

Interest rates and bond prices (face value is $1,000 and annual coupon rate is 12%) Table 16-2 Rate in the Market (%)--Annual Yield to Maturity" 10% 2 Years to Maturity 12% 14% 16% 8% $1,037.72 $1,018.59 $1,000.00 $981.92 $964.33 $1,345.84 $1,153.72 $1,000.00 $875.91 $774.84 $1,429.64 $1,182.56 $1,000.00 $861.99$755.33 4 15 25 6 +PV(F2/2,A5*2,-120/2,-1000) +PV(rate,nper,pmt,[fvj)