Question
The Frush Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes
The Frush Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $3,000 every six months over the subsequent eight years, and finally pays $3,300 every six months over the last six years. Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 10 percent compounded semiannually.
What is the current price of Bond M and Bond N?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Current priceBond M$Bond N$
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