Find what would be price if bond was compounded quarterly

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Problem 1: Chameleon Corporation has a bond 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 $900 every six months over the subsequent eight years, and finally pays $1,300 every six months over the last six years. If the required return on this bond is 5.4 percent compounded semiannually, what is the current price of Bond M? What would be the price if the bond was compounded quarterly?

Reference no: EM132807746

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