UNIT 5 Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year

UNIT 5 Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?

$1,046.59 $1,111.58 $1,133.40 $1,177.78 $1,189.04 SOLUTION