5) The MorganCorporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,600 every six months over the subsequent eight years, and finally pays $2,900 every six months over the last six years. Bond N also has a face value of $50,000 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 percent compounded semiannually.

What is the current price of bond M and bond N?(Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Current price:

Bond M$=

Bond N$ =

11) An investment project provides cash inflows of $615 per year for eight years.

What is the project payback period if the initial cost is $5,200?(Do not round intermediate calculations.Enter 0 if the project never pays back. Round

youranswer to 2 decimal places (e.g., 32.16).)

Payback periodyears=

12) An investment project costs $10,000 and has annual cash flows of $2,910 for six years.

What is the discounted payback period if the discount rate is 20 percent?(Do not round intermediate calculations.Enter 0 if the project never pays back. Round

your answer to 2 decimal places (e.g., 32.16).)

Discounted payback period=