111:48 You are given the following informatioh-concern a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 6 percent Term to maturity: 14 years Sinking fund: 3 percent of outstanding bonds retired annually; the balance at maturity a. If you buy the bond today at its face amount and interest rates rise to 12 percent after two years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix Band Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar b. If you hold the bond 14 years, what do you receive at maturity? Select What is the bond's current Vield as of right now? Round your answer to the nearest whole number d. Given your price in a what is the yield at maturity? Round your answer to the nearest whole number e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number If the final payment to retire this bond is 5900,000, how much must the firm invest annually to accumulate this sum the invested funds? Use Appendix to answer the question. Round your answer to the nearest dollar the firm is able to a percent on a. If you buy the bond today is testigunt and interest rates rise to 12 percent after two years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix Band Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar b. If you hold the bond 14 years, what do you receive at maturity? c. What is the bond's current yield as of right now? Round your answer to the nearest whole number d. Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number. 1. If the final payment to retire this bond is $900,000, how much must the firm invest annually to accumulate this sum if the firm is able to earn 6 percent on the invested funds? Use Appendix to answer the question. Round your answer to the nearest dollar Interest Factors for the Present Value of One Dollar Time Period 4 5 24 0% 71 6 - 12 7. - 15% 6% 990 980 971 92 957943 95 925 91790993 87 870 862 87 833 806781 9 82 86 56 43 718694 .650 980 961943 925907890 81 85 610 94 PTT 51 1265 658 541.60959 | 520 1971942 915889864 840 86 477 8898558376335 | 423 (9) 08.6836369252 552 516482 373 951906863 822784_747713 | 581 341 650 621567 59 497476 437402 291 1942888 838 790746705 666 630 | 596 564 50 456 Hz A10 30 335 | 37 395275 1.227 933 871-813 760711665 623 583 512 452 400 376 354 34 279 222 178 923853789 731677 540 502 467 404 351327 305 266 233 139 1914 837766703 645992 544 500 460 424 361 308 284 263 226 199 144 1.108 905 820 74466 508 463 422386 322 270 247 227 191 162 085 896 804722 650 527 45 42 188 350 287 237 25 195 162 135 1065 | 887788 01 797 add97 | 319 257 168 13712 1052 1.8793 50469 415368 326 290 29 | 182 163 145 116 .093 - 040 | 370 798 661 577 ad2388 340 299263 205 160 141 125 099 032 1.86] 43 642 555 ART 417362 315 275 239 183 140 123.108084065 0da 1683728673534 15 304 339 292 252 218 163 123 107 093071054 032 019 7 Blu THEOS 53436 37 317 270231 1981460309080000045 1026 18 86 700 58 494 416 50 296 50 212 180 130 095081069 051038 021 012 396 331 276 232 194 164 116083 070 060 043 031 07 009 20 820 673 | 37 312 258 215 - 29 180 610 478 375 295 233 184 146 116 116 092 059 038 030 024 016 | 002 | 30 74 952 42 308 231 1704_131 09 075 057 033 020 015 012 007 004 00 001 4123456789mmBBEBEB 625 1607 025 .015 Interest Factors for the Present Value of an Annuity of One Dollar (e.g. Time Period year 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 1 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 2 1.970 1.942 1.913 1.886 1859 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 3 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 1.981 1.868 1.766 1.674 4 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 5 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 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 7 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 8 7.652 7.325 7020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 9 8.566 8.162 7.786 7.435 7.108 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 2.603 109.471 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 2.930 2.650 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 7943 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 7904 7487 7.103 6.424 5.842 5.342 4910 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 7.786 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 4.675 4.001 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 2.503 3.088 2758 1715562 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 4.050 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 1917.226 15.678 14 324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7366 6.550 5.877 5.316 4 844 4.097 3.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 1952317413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.80822.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.9794.160 3.569 3.124 2.778 Interest Factors for the Future Value of an Annuity of One Dollar Period leg year) 1 7% 1.000 2.070 1.000 2010 3.030 2% 1.000 2020 3.060 4.122 5.204 3% 1.000 2030 3.091 4.184 5.309 5% 1.000 2.050 3.152 4.310 5.526 4% 1.000 2040 3.122 4.246 5.416 6% 1.000 2060 2.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 9% 10% 1.000 1.000 2.090 2 .100 3.278 3.310 4.5734.641 5.985 6.105 12% 1.000 2.120 3374 4.770 6.353 14% 16% 1.000 1.000 2.140 2.160 3.440 3.506 4.9215.067 6.610 6.877 1.000 2.200 3,640 5.368 7.442 4.440 5.101 6.152 8.286 9.369 10.462 6308 7.434 8.583 9.755 10.950 6.468 6.622 7,662 7898 8.8929 .214 10.159 10.583 11.464 12.006 8.142 9 549 11.027 12.578 8.394 8.654 9.897 10.260 11.49111.978 13.181 13.816 7.336 8.923 10.637 12 488 14.487 7.523 9.200 11.028 13.021 15.193 7.716 9 .487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 11.413 14.240 17.518 21.321 9.930 12.915 16.499 20.798 25.958 11 11.567 12.683 13.809 14947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.792 20.024 14.207 14.972 15.917 16.870 17.713 18.882 19.599 21.051 21.579 23.276 15.784 17,888 20.141 22.550 25.129 16.645 17.560 18.977 20.141 21.495 22.953 24 215 26.019 27.15229.361 18.531 21 384 24.523 27.975 31.772 20.655 24.138 28. 9 32.393 37.280 23.044 25.732 32.150 27.271 30.850 39.580 32.08936.786 48.496 37.581 43.842 51.65972.035 17.258 17 18.430 18 19.615 1920.811 20 22.019 18.639 20.012 21.412 22.841 24.297 20.157 21.762 23,414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.840 28.132 30.539 33.066 25.673 28.213 30.906 33.760 36.786 27.888 30.324 30.840 33.750 33.999 37.450 37.37941.446 40.995 45.762 33.003 35.950 42.753 50.980 60.925 87.442 36.974 40.545 48.884 59.118 7 1,673 105.93 41.301 45.59955.750 68.934 84.140 128.11 46.018 51.159 63.44078.96998.603 154.74 51.160 57.275 72.0529 1.025 115.370 186.68 25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133 33 181.87 249 210 471.98 20 24.78540568 47.575 56,085 66.430 79.058 94.461_113.283 136.308 164.494 241 323 356.8785302101181.8