A corporation issues a debt instrument such as a bond that promises to pay you annually $40 for three years and $1,000 after three years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 7 percent? Use Appendix Band Appendix to answer the question Round your answer to the nearest dollar Hide Feedback Inert Interest Factors for the Present Value of One Dollar Time Period (e.g year) 2% 5% Interest Factors for the Present Value of an Annuity of One Dollar Period year) -NM 4 5 25 SH $% 10% 10% 15% 20% 24% 28% 22 0.990 0.980 0.921 0992 0.952 093 0935 0926 0917 0.909 0893 0.877 0.862 0.347 0.838 0.805 0.781 0.758 0.735 1970 1912 1913 1886 1859 1833 1808 1783 1.759 1736 1690 1647 16051566 1.528 1.4571392 1332 1.276 2.9412.884 2829 2.775 2723 2.673 2624 2577 2531 2.487 2402 2222 2246 2174 2.106 1987 1868 1766 1676 3.902 3.808 3.717 3630 3.546 3.465 2387 3312 2240 3.1703037 2914 2.798 2690 2589 2404 2.741 2036 1966 4.853 4 713 4580 4,452 4.329 4212 4100 3993 3.890 3.791 3.605 3.43 3276 3.122 2.991 2.745 2.532 2.345 2.181 5.795 5601 5.417 5242 5.076 4917 4.766 4623 4.486 4355 4.111 3.889 3685 3.498 3.325 3020 2.759 2534 2.299 6.728 6.472 6230 6.002 5.786 5582 5.389 5206 5.033 4.868 4564 4.288 4039 3.812 3.605 2.242 2932 2.678 2.455 76527325 7020 6.733 6.463 6210 5971 5.747 5.535 5335 4.968 4639 4346 4.078 3837 3.421 3.075 2786 2.540 8.566 8.162 7.786 7435 7.108 6.802 6515 6 247 5985 5.759 5328 4946 4607 4203 4031 3566 2184 2.868 2603 9.471 8983 8.530 8.111 7722 7.360 7024 6.710 6.418 6.145 5.650 5.216 4833 414 4193 3.682 3.269 2.930 2650 6 7 8 9 10 11 12 13 14 15 10.368 9.7879.253 8.760 8.306 78877499 7.139 6 805 6.495 5988 5.453 5.029 4656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8 384 79443 7536 7161 6.814 6.194 5.660 5.197 4.793 4.479 3.851 2387 2018 2.708 12.134 11348 10.635 9.986 9.394 8.534 8.358 7904 7.487 7.103 6.424 5.842 5342 4910 4.5333912 3.427 3.040 2.727 13004 12 106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5008 4611 3962 3.459 1.061 2.140 13.865 12.849 11 938 11.118 10.380 9712 9.108 8559 8.060 7606 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 9447 8.851 8312 7824 6914 6.265 5.669 5.162 4730 4.003 3.503 3.088 2.758 17 15.562 14 292 13.166 12.166 11.274 10.477 9763-9.122 8.544 8.002 7.120 6.373 5.79 5.222 4775 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 5273 48124080 3.529 2.104 2.767 17.226 15.678 14.324 13.134 12.085 11.158 10 336 9.604 8.950 8.365 7366 6.550 5877 5.316 4846 4.097 3.589 3.109 2.770 20 18.046 16 351 14.877 13.590 12.462 11.470 10.894 9.818 9.128 8.514 7469 6.623 59295353 4.870 4110 3545 3.113 2.272 25 22.023 19.523 17413 15.622 14 094 12.782 11654 10.675 9.8239.077 7843 6873 6.097 5.467 4,948 4.147 3.554 3.172 2.776 30. 25 80822.932 19.600 17.292 15:373 13.765 12.409 11.258 10.2/4 9 427 8.055 7003 6.177 5517 4979 41603.560 2.124 2.778
