The Florida Investment Fund buys 88 bonds of the Gator Corporation through a broker. The bonds pay
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Question:
The Florida Investment Fund buys 88 bonds of the Gator Corporation through a broker. The bonds pay 7 percent annual interest. The yield to maturity (market rate of interest) is 10 percent. The bonds have a 25-year maturity. UseAppendix BandAppendix Dfor an approximate answer but calculate your final answer using the formula and financial calculator methods. assume $1000
a.Compute the price of a bond.(Do not round intermediate calculations and round your answer to 2 decimal places.)
b.Compute the total value of the 88 bonds.(Do not round intermediate calculations and round your answer to 2 decimal places.)
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