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The mallory corp has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years.
The mallory corp 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 $1,200 every six months over the subsequent eight years, and finally pays $1500 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 payment over the life of the bond. If the required return on both there bonds is 10 percent compounded semiannually, what is the current price of bond M of bond N?
BOND MValue of payment of $1,200 for 8 years in the 6th year end.RateYearSemi annual PaymentPV 10%81200$13,005.32 Value of payment of $1,500 for 6 years in the 14th year end.RateYearSemi...