a) Crane, Inc., has issued a three-year bond that pays a coupon rate of 6.6 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.6 percent, what is the market value of the bond? (Round answer to 2 decimal places, e.g. 15.25.)

Market value $___________

b) Crane Inc. has seven-year bonds outstanding that pay a 11 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 7.150 percent. What is the current value of these bonds? Assume annual coupon payments.

Current value $_________