Appendix b

appendix d

a. A $1,000 band has a 5.5 perent coupon and matures alter eleven years. If current interest rates are 8 percent, what should be the price of the band? Assume that the bond pay terest annually. Use Appendix Band Appendix to answer the question. Round your answer to the nearest dollar b. after five years terest rates are terest annually Round you and Appendix to answer the question. Assume that the bond pas percent, what should be the price of the body Use Appendix to the nearest della Even though interest rates did not change in and b, why did the price of the bond change The price of the bond with the longer term is-Select than the price of the bond with the whorter term as the investors will collect the best interest payments and receive the principal within a longer period of time d. Change the interest rate in and to 5 percent and rework your answers, Assume that the bond pays interest annually Round your answers to the nearest dotar Price of the bond (even years to maturity): 5 Price of the bond sx years to maturity Even though the interest rate 5 percent in both why are the bond prices different than the price of the bond with the shorter the investors will collect the f o rest payments for a longer The price of the bond with the longer terms period of time Interest Factors for the Present Value of One Dollar Jean % 0 - 5% % 9 31 : : 1 | | 94 94 PRITON B 19 9 2 915 APPY E4 P24 19249 530 ) 951 16 A3 82 14 % 0 Y % 10%114%15% ||| 4D) 93 7 SU BA | : | 12 || 1 9 : (2) 9 ) 161 0 6. 2% B : 43 417 DG 1 TL1450 | || 557 53 || 4 27 4 437 ,4 1 | 11 | ART | 94 aa 18 - THE S 1993 8 2 0 11 973 79 19 ) ||| ! 56 M y A AND EIN T ) 2017 31 2017 Facle AM | 424 DE A LP? IN 10 136 ) E 314 29 16 115 266233179139 1 ) 2014 14 10 24 237 11 1 5 . 1 %, ) 10H 12345 678gm npBBS EDB% s 1387 | 39 w U MEB 28 77 E- 10 BE SEA) HTC UHD Tai 19 10 11 EP4 SMT T- 6 12 Ba 10 - | ETTA 11 1 84 14 10 1. rss (F ri) 11-1 - 1 1 - 1. 11 .2 TSR 10606221 2017- 12 0 2 06 7 196 92 07 5 70 61 72 3 22 184 146 000 119 10 0 0 0 0% 22 30 74252 12-18 11 11 (105 07-03 (12) 2 009 02 nel Interest Factors for the Present Value of an Annuity of One Dollar Period 1 0 2 3 4 5 14. 2% 3% 4% 5 6 % 8% 99% 10% 12% 14% 16% 10% 20% 20% 20% 37 .990 ORO 0.971 092 0.952 0.943 0935 096 0.917 0009 0.93 0.877 0.862 0.2 0.833 O RO6 0.71 0.75 0.735 1.970 1.942 1.913 1.886 1.899 1.833 1808 1787 1.759 1.736 1640 1.647 1.605 1.566 1.528 1.457 1392 13121 275 2.941 2.884 2.8292.775 2.723 2.673 2624 25772531 2482 2402 2222 2246 2174 2106 1981 1ER 766 1674 3902 3.BOB 3.7173510 3.516 3465 337 3312 7240 31703.017 2.914 2.798 2690 2.589 2 404 2 241 2.096 1.966 4853 4.713 4.580 4.452 4.329 4.212 4.100 3993 3.890 3.791 3.605 3433 1.2743.127 2.991 2.745 2.532 2.345 2181 6 7 8 5.795 5.601 5.417 5.242 5.076 4.917 466 4623 4.486 4155 4.111 389 3685 3.4083326 3020 27592534 2399 6.728 6.472 6230 6 002 5.786 5 582 539 5.206 S033 4868 4554 4288 4029381236053242 29372575455 76527325 7020 6.733 6.462 6210 5971 5.247 5535 5375 4,068 4.629 4 344 40783.837 3.421 3076 2.786 2.540 .566 8.162 7.786 7.435 71086 802 6 515 6.247 5.085 5.759 5 328 4.946 4 607 4.302 4031 566 3 184 2.868 2.603 9.471 8.983 8.530 8.111 7222 73607024 67106.418 6145 5.650 5 216 4833 4.494 4.192268212692930 2650 9 8 10 11 10.368 9.787 0253 8.760 8.306 78877499 71296.805 6495 5.985.453 5029 4656 4.3273.7263335 29782.683 12 11.255 10.575 9540 385 8.862 384 2043 752671616 814 6 194 5.560 5 1974.792 4.4393.851 7 3 012 2.708 13 12134 11 348 10.635 996 9 3948 534 9358 70047487 7102 6.42458425124910 4.533301234210402127 14 13 004 12 105 11 296 10 567 98999295145 778677676 52850075.468 500 51130523030512100 15 13.865 128.49 11.938 11.118 10.3809712 9.108 8.598.060 7.606 6.811 6.142 5.575 5.09246754.001 3.451 3076 2750 16 14 718 13.578 12.561 11.652 10 838 10 10694473951831272469746.265 566 5162 47300032503 2 758 12 15 5 14.299 13 1662 166 1127 10.477 9763 9133548 71205370952221754099351830912.763 1 16 398 14 992 12754 17659 11 690 10 28 10099 DT28.756 82017250546788523812402593104767 19 17 226 15.678 14 20 13 134 12.085 11.158 10.216 9.604 8.950 8.165 .36665505.827 5310 484440973519 3.109 2770 2018 046 16 351 14 877 13 500 12 462 11 470 10 594 918 9.128 514 76666239295351870110 2546 212 25 22.023 19 523 17413 15 622 10094 12.783 1654 1067598239077782 68736.01 5467.948 4147 3.564 21 . 30 25 808 22937 19 600 17 292 15 373 13765 12.409 11258 10.774 9.422 80570031 5517 49 160356212642778