Wachowicz corporation issued 15-year non callable 75 annual


Wachowicz Corporation issued 15-year, non callable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. 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. $1,132.95

b. $1,162.00

c. $1,191.79

d. $1,104.62

e. $1,077.01

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Financial Management: Wachowicz corporation issued 15-year non callable 75 annual
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