What is the current price of the bonds

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1. One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.3% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?

2. Jon Corp.'s sales last year were $345,000, and its year-end receivables were $42,500. Harper sells on terms that call for customers to pay 30 days after the purchase, but many delay payment beyond Day 30. On average, how many days late do customers pay? Base your answer on this equation: DSO ? Allowed credit period = Average days late, and use a 365-day year when calculating the DSO

Reference no: EM132070332

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