4.

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 Lelsure Time Corporation. The $1,000 par value bond pays 7 percent annua! interest and has 16 years remaining to maturity. The current yield to maturity on similar bonds is 15 percent. Use Appendix B :and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the current price of the bonds? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. b. By what percent will the price of the bonds increase between now and maturity? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places