Two different bonds currently outstanding

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The McKeegan Corporation has two different bonds currently outstanding. Bond M has a face value of $13,500 and matures in 17 years. The bond makes no payments for the first 5 years, then pays $700 every six months over the subsequent 7 years, and finally pays $900 every six months over the last 5 years. Bond N also has a face value of $13,500 and a maturity of 17 years; it makes no coupon payments over the life of the bond. If the required return on both these bonds is 11 percent compounded semi annually, the current price of Bonds M and N is $_____ and $_____ , respectively. (2 decimal places)

Reference no: EM13870680

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