$1,000 bond has a coupon of 6 percent and matures after twelve years. Assume that the bond pays interest annually.

What would be the bond's price if comparable debt yields 7 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

What would be the price if comparable debt yields 7 percent and the bond matures after six years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

Why are the prices different in a and b?

The price of the bond in a is

-Select-

than the price of the bond in b as the principal payment of the bond in a is

-Select-

than the principal payment of the bond in b (in time).

What are the current yields and the yields to maturity in a and b? Round your answers to two decimal places.

The bond matures after twelve years:

CY:

%

YTM:

%

The bond matures after six years:

CY:

%

YTM:

%

value of annuity of one dollar is appendix d

value of one dollar is appendix b

Book Problem 13-03 A51,000 band has a ton of percent and reserve years that the bond ay waly 2. What would be the band's price complete yet percene? Use and end te were question Round your newer to the nearest dolar 1. What would be the price come to yetu? percatane ve band mature tryente operate and Agenda Dor the evention Round your answer to the newest doar Why are the prices offerent in a The price of the bond water than the bordercolante Bondinese & What they had to you to was The bonds werver CY than the price payment and natin The box CY YTH Grade New Save Continue Interest Factors for the Present Value of an Annuity of One Dollar 1% Time Period le-9 year) 1 2 3 4 5 29 3% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20%. 24% 28% 32% 36% 0.990 0.980 0,971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1,605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1.766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 00 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4,607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2930 2.650 9 10 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.6754.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4,059 3.518 3.097 2.763 18 16,398 14.992 13.754 12.659 11,690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4,812 4.080 3.529 3.104 2.767 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2772 25 22.023 19.523 12413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 Interest Factors for the Present Value of One Dollar Time Period (e.g. year) 1 2 3 4 5 24% .806 1% 990 980 971 1961 951 2% 3% 980 971 961 943 942 915 .924 906 863 4% 962 925 889 .855 822 952 907 .864 .823 .784 7% 935 .873 816 .763 713 943 890 840 .792 .747 8% 926 .857 794 .735 .681 9% 917 .842 772 .708 .650 10% 909 826 .751 683 -621 12% .893 797 712 .636 .567 14% .877 769 .675 592 519 15% 870 .756 .658 572 .497 16% .862 743 641 552 .476 18% 847 .718 609 516 437 650 20% .833 .694 579 482 402 28% .781 .610 477 .373 291 .889 524 423 341 67890| 942 933 923 .914 905 .888 .871 853 837 820 .838 .813 789 .766 744 .790 .760 731 703 .676 746 711 .677 .645 .614 .705 .665 .627 .592 .558 .666 .623 582 544 508 .630 583 .540 .500 463 596 547 502 460 422 564 513 467 424 386 .507 452 404 361 322 456 ,400 -351 308 270 432 376 327 284 .247 410 .354 305 263 .227 370 314 -266 .226 .191 335 279 233 .194 .162 275 .222 .179 227 .178 139 108 085 144 .116 11 12 13 14 15 .896 .887 .879 .870 861 804 .788 .773 .758 .743 722 .701 .681 .661 .642 .650 625 .601 577 555 585 557 1530 505 481 527 497 ,469 442 417 475 444 415 388 362 429 397 368 340 315 .388 .356 326 .299 275 350 319 290 .263 239 287 257 .229 .205 .183 .237 .208 .182 160 .140 215 .187 .163 .141 .123 .195 .168 .145 .125 . 108 .162 .137 116 .099 .084 135 112 ,093 078 .065 .094 ,076 061 .049 .040 .066 052 .040 .032 ,025 .107 093 16 17 18 19 20 853 .844 836 828 .820 728 714 700 686 673 .623 .605 587 570 .554 534 513 494 475 456 458 436 416 396 377 394 371 .350 331 312 339 317 296 276 258 292 270 250 232 215 252 .231 .212 .194 .178 218 198 .180 .164 149 163 .146 130 .116 .104 .123 108 .095 .083 .073 081 070 .061 093 080 069 1.060 .051 .071 060 051 043 .037 054 .045 038 031 .026 032 026 -021 .017 014 ,019 .015 012 .009 .007 25 780 .610 .478 375 295 233 .184 .146 .116 092 059 .038 .030 024 .016 010 005 002 30 742 552 412 308 231 .174 131 .099 .075 057 .033 020 .015 012 .007 004 002 .001