The morgan corporation has two different bonds currently


The Morgan 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 $1, 800 every six months over the subsequent eight years, and finally pays $2, 100 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 payments over the life of the bond. The required return on both these bonds is 10 percent compounded semiannually.

What is the current price of Bond M and Bond N? (Do not round intermediate calculations and round your final answers to 2 decimal places, (e.g., 32.16))

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Financial Management: The morgan corporation has two different bonds currently
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