Problem:
The Florida Investment Fund buys 94 bonds of the Gator Corportation through a broker. The bonds pay 10 percent annual interest. The yield to maturity (market rate of interest) is 12 percent. The bonds have a 20 year maturity.Using an ssumption of semiannual interest payments.
Required:
Question 1: Compute the price of a bond.
Question 2: Compute the total value of the 94 bonds.
Note: Show supporting computations in good form.