4 Katie Pairy Fruits Incorporated has a $1,500 16-year bond outstanding with a nominal yield of 16 percent (coupon equals 16% $1,500 = $240 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. ts eBook Print ferences a. Compute the current price of the bond. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. Current price of the bond $ Present value 1,918.44 b. Find the present value of 4 percent $1,500 (or $60) for 16 years at 12 percent. The $60 is assumed to be an annual payment. Add this value to $1,500. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.

Katie Pairy Fruits incorporated has a \$1,500 16-year bond outstanding with a nominal yieid of 16 percent (coupon equals 16%$1,500 =$240 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix Q for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the current price of the bond. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. b. Find the present value of 4 percent * $1,500 (or $60 ) for 16 years at 12 percent. The $60 is assumed to be an annual payment Add this value to $1,500. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual