seLab

Question $3,$ P$9-4($similar to$)$

HW Score: $66\mathrm{.}61\%,33\mathrm{.}31$ of $50$ points

Part $2$ of $2$

Points: $2$ of $4$

$($Related to Checkpoint $9\mathrm{.}4)($Bond valuation$)$ A bond that matures in $20$ years has a $$1,000$ par value. The annual coupon interest rate is $13$ percent and the market's required yield to maturity on a comparable$-$risk bond is $14$ percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

a$.$ The value of this bond if it paid interest annually would be $$933\mathrm{.}7.($Round to the nearest cent.$)$

b$.$ The value of this bond if it paid interest semiannually would be $

$($Round to the nearest cent.$)$