Question
the mckeegan 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 mckeegan 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 $1,100 every six months over the subsequent eight years, and finally pays $1,400 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. if the required return on both these bonds is 7 percent compounded semiannually, the current price of bond m is what? and bond n is what?
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