Computation of new price of bonds

Reference no: EM1314365

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?

a. $1,046.59
b. $1,111.58
c. $1,133.40
d. $1,177.78
e. $1,189.04

Reference no: EM1314365

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