Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value...
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Las Paletas 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 $1,300 every six months over the subsequent eight years, and finally pays $1,600 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 8 percent compounded semiannually.
What is the current price of bond M and bond N? (Round your answers to 2 decimal places. (e.g., 32.16)) SHOW WORK
Current price
Bond M
$
Bond N
$
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