Question: 3 Problem 16-6 Bond value [LO 16-2] 20 points The Florida Investment Fund buys 80 bonds of the Gator Corporation through a broker. The bonds

3 Problem 16-6 Bond value [LO 16-2] 20 points The Florida Investment Fund buys 80 bonds of the Gator Corporation through a broker. The bonds pay 12 percent annual interest. The yield to maturity (market rate of interest) is 14 percent. The bonds have a 25- year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Using an assumption of semiannual interest payments: a. Compute the price of a bond. (Do not round intermediate calculations and round your answer to 2 decimal places.) eBook Hint Price of the bond $ 816,931 Ask Print b. Compute the total value of the 80 bonds. (Do not round intermediate calculations and round your answer to 2 decimal places.) References Total value

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