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The Victoria Telephone Company has a \$1,000 par value bond outstanding that pays 13 percent interest with annual payments. The current yield to maturity on such bonds in the market is 14 percent. Use Appendix B and Appendix D. Compute the price of the bonds for these maturity datess: (Round "Py Factor" to 3 decimal places. Do not round intermedilate calculations. Round the 5 inal answers 202 decimal places.? Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,120. Ron is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 13 percent annual interest payable semiannually, and has 20 years remaining until maturity. The current yield to maturity on similar bonds is 10 percent. a. Compute the new price of the bond. Use Appendix B and Appendix D. (Rhound "Py Factor" to a decimal places. Do not round intermediate calculations. Found the final answer to 2 decimal places.) New price of the bond b. Do you think the bond is overpriced? Yes No Martin Shipping Lines issued bonds 10 years ago at $1,000 per bond. The bonds had a 30 -year life when issued, with semiannual payments at the then annual rate of 9 percent. This return was in line with required returns by bondholders at that point, as described below: Assume that today the inflation premium is only 2 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. Compute the new price of the bond. Use Appendix B and Appendix D. (Hound "P Fifactor" to 3 decimal places. Do not round intermedlate calculations. Found the final answer to 2 decinal places. New price of the bond Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond with semiannual payments has 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 14 percent. (Round. Fi Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers tol a decimar places.) a. What is the current price of the bonds? Use Appendix B and AppendixD. Current price $ b. By what percent will the price of the bonds increase between now and maturity? Price increases by % c. What is the annual compound rate of growth in the value of the bonds? (Use Appendix A) Annual compound rate \%