Grossnickle Corporation issued 20-year, noncallable, 7.4% 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 19 years to maturity?
A. $1,281.57
B. $1,000.85
C. $1,013.05
D. $1,220.55
E. $1,196.13
Answer: D
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