Using a financial calculator, solve for the unknowns in each of the following situations.
a. On June 1, 2021, Jennifer Lawrence purchases lakefront property from her neighbor, Josh Hutcherson, and agrees to pay the purchase price in seven payments of $16,000 each, the first
payment to be payable June 1, 2022. (Assume that interest compounded at an annual rate of 7.35% is implicit in the payments.) What is the purchase price of the property?
b. On January 1, 2021, Gerrard Corporation purchased 200 of the $1,000 face value, 8% coupon, 10-year bonds of Sterling Inc. The bonds mature on January 1, 2031, and pay interest annually beginning January 1, 2022. Gerrard purchased the bonds to yield 10.65%. How much did Gerrard pay for the bonds?