The grimm corporation has two different bonds currently


The grimm 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 $800 every six months over the subsequent eight years, and finally pays $1000 every six months over the last six years. Bond N also has a face value of $20000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the requited return on both these bond is 5.9 percent compound semiannually, what is the current price of Bond M? and Bond N?

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Financial Management: The grimm corporation has two different bonds currently
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