Question: The Florida Investment Fund buys 52 bonds of the Gator Corporation through a broker. The bonds pay 7 percent annual interest. The yield to maturity (market rate of interest) is 12 percent. The bonds have a 10-year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Using an assumption of semiannual interest payments:
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 52 bonds. (Do not round intermediate calculations and round your answer to 2 decimal places.)