Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 16 percent yield. After 24 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 14 percent to maturity. Use Table 16-2. Determine the price of the bonds with 1 years remaining to maturity.

Table 16-2 Interest rates and bond prices (face value is $1,000 and annual coupon rate is 12%) A B D E F G H 1 Rate in the Market (%)-Annual Yield to Maturity* 2 Years to Maturity 8% 10% 12% 14% 16% 3 1 $1,037.72 $1,018.59 $1,000.00 $981.92 $964.33 4 15 $1,345.84 $1,153.72 $1,000.00 $875.91 $774.84 25 $1,429.64 $1,182.56 $1,000.00 $861.99 $755.33 =+PV(F2/2,A5*2,-120/2,-1000) +PV(rate,nper,pmt, [fv]) 5 6 N