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Compute the price of a bond

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The Florida Investment Fund buys 88 bonds of the Gator Corporation through a broker. The bonds pay 7 percent annual interest. The yield to maturity (market rate of interest) is 10 percent. The bonds have a 25-year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. assume $1000

a. Compute the price of a bond. (Do not round intermediate calculations and round your answer to 2 decimal places.)

b. Compute the total value of the 88 bonds. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM132412373

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