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4 8 oints Katie Pairy Fruits Inc. has a $1800 19 year bond outstanding with a nominal yleld of 15 percent (coupon equals 15% $1,800

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4 8 oints Katie Pairy Fruits Inc. has a $1800 19 year bond outstanding with a nominal yleld of 15 percent (coupon equals 15% $1,800 - $270 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix Band Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the current price of the bond. (Do not round Intermediate calculations. Round your final answer to 2 decimal places. Assume Interest payments are annual) Current price of the bond ebook Print b. Find the present value of 3 percent $1,800 for $54) for 19 years at 12 percent. The $54 is assumed to be an annual payment. Add this value to $1,800. (Do not round Intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual) Present value

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