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Applied Software has a $1,000 par value bond outstanding that pays 10 percent interest with annual payments. The current yield to maturity on such bonds
Applied Software has a $1,000 par value bond outstanding that pays 10 percent interest with annual payments. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and Appendix D. Appendix just has the calculateed numers. I can't put it here, calculate it yourself. Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Price of the bond a. 30 years $
b. 16 years $
c. 1 year $
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