Question: 4 . a . Pacific Homecare has two bond issues outstanding. Both bonds pay $ 1 0 0 in annual interest plus $ 1 ,

4.a. Pacific Homecare has two bond issues outstanding. Both bonds pay $100 in annual interest plus $1,000 at maturity. Bond S (S for short-term) has a maturity of 5 years, and Bond L (L for long-term) matures in 30 years. What is the value of Bond L when the required interest rate is 10 percent?
Answer to the nearest cent.
(Note: A bond's price will always equal this answer when the coupon rate
equals the required interest rate.)
4.b. Pacific Homecare has two bond issues outstanding. Both bonds pay $100 in annual interest plus $1,000 at maturity. Bond S (S for short-term) has a maturity of 5 years, and Bond L (L for long-term) matures in 30 years. What is the value of Bond S when the required interest rate is 5 percent?
Answer to the nearest cent.

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