[rebeccaboo]

Applied Software has $1,000 par value bonds outstanding at 20 percent interest. The bonds will mature in 15 years.

Compute the current price of the bonds if the present yield to maturity is (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the "$" sign in your response):

Price of the bond
(a) 9 percent $
(b) 12 percent $
(c) 10 percent $

[rebeccaboo]

Barry's Steroids Company has $1,000 par value bonds outstanding at 20 percent interest. The bonds will mature in 40 years.

Compute the current price of the bonds if the percent yield to maturity is (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the "$" sign in your response)


(a) 5 percent $
(b) 6 percent $

[rebeccaboo]

The Hartford Telephone Company has a $1,000 par value bond outstanding that pays 14 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent.

Compute the price of the bonds for these maturity dates (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the "$" sign in your response):


(a) 30 years $
(b) 17 years $
(c) 3 Years $

[rebeccaboo]

Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,100. Ron is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 10 percent interest, and it has 15 years remaining until maturity. The current yield to maturity on similar bonds is 8 percent.

(a)
Calculate the present value of the bond. (Round "PV Factor" to 3 decimal places, intermediate and final answer to 2 decimal places. Omit the "$" sign in your response)

Present value $