One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 8.8% 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?
Select the correct answer.
a. $1,324.17 b. $1,313.89 c. $1,321.60 d. $1,319.03 e. $1,316.46