Question: . Problem ZED-1i} {calculator version) Marlin Shipping Lines issued oonds ten years ago at $5,400 per bond. The bonds had a 30-year life when issued,

. Problem ZED-1i} {calculator version) Marlin Shipping Lines issued oonds ten

. Problem ZED-1i} {calculator version) Marlin Shipping Lines issued oonds ten years ago at $5,400 per bond. The bonds had a 30-year life when issued, with semiannual payments at the then annual rate of 10 percent. This return was in line with required returns by bondholders at that point, as descnhed below: Real rate of retum lna tion premi urn Risk premi 4 um 2% Tota I l'lrE. retum Assume that today the inflation premium is only 2 percent and is appropriately reflected in the required retum [or yield to maturity} of the bonds. Compute the new price of the hood. {Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Ftound the nal answer to 2 decimal places]

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