The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000
Fantastic news! We've Found the answer you've been seeking!
Question:
The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $1,400 every six months over the subsequent eight years, and finally pays $1,700 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 10% compounded semiannually, what is the current price of bond M and bond N?(Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Posted Date: