One year ago Lerner and Luckmann Co issued 15year noncallable 7 4% annual coupon bonds at their par value of

Question

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.4% 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?

Financial Accounting