Answered step-by-stepThe Morgan Corporation has two different bonds currently...
The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,400 every six months over the subsequent eight years, and finally pays $2,300 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6 percent compounded semiannually.
What is the current price of Bond M and Bond N? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
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