A company has 15-year bonds with a $5000 maturity value and a quoted coupon rate of 14% paid semiannually. The current yield is 10% compounded semiannually. (Round your answers to the nearest cent.) (a) Compute the price of these bonds. (b) Suppose that with 10 years remaining until maturity, the yield rate drops to 8% compounded semiannually. Find the new price of these bonds.

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A company has 15-year bonds with a $5000 maturity value and a quoted coupon rate of 14% paid semiannually. The current yield is 10% compounded semiannually. (Round your answers to the nearest cent.)

(a) Compute the price of these bonds.


(b) Suppose that with 10 years remaining until maturity, the yield rate drops to 8% compounded semiannually. Find the new price of these bonds.

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