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Katie Pary Fruits lnc. has a S2 700, 19-year bond outstanding with a nominal yield o 16 percent coupon equals 16% x S2 700- 32

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Katie Pary Fruits lnc. has a S2 700, 19-year bond outstanding with a nominal yield o 16 percent coupon equals 16% x S2 700- 32 per year Assume that the c ment market re u ed interest rate on similar 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 b. Find the present value of 4 percent x $2,700 (or $108) for 19 years at 12 percent. The $108 is assumed to be an annual payment. Add this value to $2,700. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) Present value

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