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A 523,000,9.9% bond redeemable at par is purchased 6 years before maturity to yield 5.4% compounded semi-annually. If the bend interest is payable semi-annualiy, what is the purchase price of the bond? The purchase price of the bond is \{ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) A $2,000,000 issue of eleven-year bonds redeemable at par offers 9% coupons payable annually. What is the issue price of the bonds to yield 7.2% compounded semi-annually? The issue price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) A company must make a choice between two invesiment altematives. Altomative 1 will return the company $10,000 at the end of tour years and $10,000 at the erd of sqven year. Alernative 2 int retum the company $8,500 at the end of each of the next seven years. The company nomally expects to eam a rate of rebien of 18% on funds inveutied. Compute the presert vale of each alternative and determine the preferred allemative according to the discounted cash fow criorion. An obligation can be sottied by making a payment of $2,000 now and a final payment of $4,000 in five years (Alternative 1). Ahernativily, fis obligation con be settied by paymeres of $800 at the end of every six months for seven years (Altemative 2). Interest is 9% compounded semi-annusly, Compule the present value of each atternative and determine the preferied allemative according to that discounted cash fow criterion. The present value of Altemasive 1 is 5 (Round to the nearest dollar as neoded. Round all intermediate values to six decimal places as needed)