The price is computed using the perpetuity formula 26. You have decided to purchase a house near the coast in order to spend your summer vacations there in the future. To fulfill such an investment, three years from now you will start paying a 15- year annuity of thirty $5,000 semi-annual payments. The first payment will be made after 3.5 years. What is the current value of the annuity if the discount rate is 7%? (10 Points) Solve this Exercise in handwriting and upload the solution on the other Assignment Enter your answer 27. Adriatic Co. has issued 20 year bonds five years ago. The coupon rate is 99. The bond makes semi-annual payments. Assuming a $1000 par value and an YTM of 796, what is the current dollar price of the bond? (8 Points) Soluth Everose in hardering and upload the solution on the other Assignment PHILIPS