### Find the current price of bonds

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##### Reference no: EM1343937

The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of \$27,500 and matures in 17 years. The bond makes no payments for the first 7 years, then pays \$1,400 every six months over the subsequent 3 years, and finally pays \$1,800 every six months over the last 7 years. Bond N also has a face value of \$27,500 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 semiannually, the current price of Bonds M and N is \$______ and \$4453.99.

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