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One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 5.2% annual coupon bonds at their...

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Accounting

One year ago Lerner and Luckmann Co. issued 15-year,noncallable, 5.2% annual coupon bonds at their par value of $1,000.Today, the market interest rate on these bonds is 5.5%. What is thecurrent price of the bonds, given that they now have 14 years tomaturity?

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3.7 Ratings (556 Votes)
Current Price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the Face ValuePar Value The Price of    See Answer
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