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Answer to Question #35893 in Finance for angela lintz

Question #35893
Bond M has face val of $40,000 & matures in 20 yrs, makes no pmts for 1st 6 yrs, then $1500 every 6 mths for 8 yrs, then pays $1800 evry 6 mths for last 6 yrs. Bond N has face val of $40,000 & maturity 20 yrs & makes no coupon paymts over the life of the bond. Req ret on both is 12% compounded semiannually what is the current price of each bond?
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Expert's answer
2013-10-09T14:15:02-0400
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