What is current price of the bonds

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Reference no: EM131841891

1. One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 9.9% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?

a. $1,413.12

b. $1,416.06

c. $1,419.00

d. $1,424.88

e. $1,421.94

2. Suppose you earned a $380,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

a. $39,426.66

b. $39,432.76

c. $39,438.86

d. $39,420.56

e. $39,414.46

Reference no: EM131841891

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