Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $70,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,800 every six months over the subsequent eight years, and finally pays $3,100 every six months over the last six years. bond n also has a face value of $70,000 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.

Bonds N present market value: $ 10,405.05

Bond M  present market value: $  36.893,9‬0

Explanation:

Bond N is a zero-coupon we discount maturity at 10%:

We calculate using the present value of a lump sum:

Maturity   70,000.00

time   20.00

rate  0.1

PV   10,405.05

Bond M

present value of the annuity payment:

C2,800.00

time16 (8 years 2 payment per year)

rate0.05 (10% annual becomes 5% semiannual)

PV$30,345.7548

Then we discount at present date using the lump sum formula:

PV   13,901.74

We do the same for the next annuity:

C3,100.00

time12

rate0.05

PV$27,476.0801

PV   12,587.11

Now we add the present valeu of the maturity: which is the value of the zero-coupon bond: 10,405.05

Bond M present value: 10,405.05 + 12,587.11 + 13,901.74 = 36.893,9‬

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..

ell really, the setting was in franklin and lincoln visits franklin even after he moved to columbus, and he went to school