Problem:
Ryngaert Inc. recently issued non-callable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%.
Required:
Question: If the current market interest rate is 6.8%, at what price should the bonds sell?
• $844.62
• $979.40
• $736.80
• $1,006.36
• $898.53
Note: Explain all steps comprehensively.