Appendix B

Appendix D

Interest Factors for the Present Value of One Dollar 5% 16% Time Period leg year) 1 2 3 4 5 000 w 233 .184 146 116 221 174 .131 .099 075 Interest Factors for the Present Value of an Annuity of One Dollar Time Period leg 25 1 2 3 4 5 1% 3% 5X 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1942 1913 1.886 1859 1.833 1.808 1.783 1.759 1.736 1.690 1647 1,605 1.566 1.528 1.457 1.392 1.332 1.276 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 1674 3902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3,170 3,037 2914 2.798 2.690 2589 2.404 2.241 2.096 1.966 4.853 4713 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 2345 2.181 6 5.795 5.601 5.417 5.242 5.076 4917 4.766 4,623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2399 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2455 8 7.652 7.325 7.020 6.733 6.463 6210 5.971 5.747 5.535 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 7108 6.802 6.515 6.247 5985 5.759 5328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 10 9.471 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 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6,805 6,495 5.8 5.453 5.029 4.656 4.327 3.776 3.335 2978 2.683 12 11.255 10.575 9.954 9.385 8.863 8384 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 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7487 7.103 6.424 5,842 5.342 4.910 4.533 3912 3.427 3.040 2727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.628 6.002 5.468 5,008 4.611 3962 3.459 3,061 2.740 15 13.865 12.849 11938 11.118 10.380 9.712 9.108 8.559 8060 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 7824 6974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 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 4,059 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 5.273 4.812 4.080 3.529 3.104 2.767 19 17.226 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 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 2003 6.177 5.517 4979 4.160 3.569 3.124 2.778 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 12 years Sinking fund: 4 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 13 percent after five years have passed, what is your capital gain or loss? Assume that the bond pays Interest annually. Use Appendix B and 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 12 years, what do you receive at maturity? -Select- 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. % t. If the final payment to retire this band is $800,000, how much must the firm invest annually to accumulate this sum is the firm is able to cam 7 percent on the invested funds? Use Appendix to answer the question. Round your answer to the nearest dollar, $