The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 19 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)
a. 7% Bond Price