Problem 3-11 (LG 3-5)

Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8 years remaining to maturity, and have a required rate of return of 10.5 percent.

a.	The bond has a 5.2 percent coupon rate.(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Fair present value

$

b.	The bond has a 7.2 percent coupon rate.(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Fair present value

$