chapter 16-04

A $1,000 bond has a 4 percent coupon and currently sells for $940. The bond matures after four years. What is the bond's anticipated yield? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. % Continue without saving Interest Factors for the Present Value of an Annuitv of One Dollar Interest Factors for the Present Value of One Dollar \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time \\ Period \\ (exg- \\ yeat) \end{tabular} & 1% & 2% & 3% & 48 & 5% & 6\%: & 7% & 8% & 9% & 10% & 12% & 14% & 15% & 16% & 18% & 2086 & 2486 & 28 \\ \hline \begin{tabular}{l} 1 \\ 2 \\ 3 \\ 4 \\ 5 \end{tabular} & \begin{tabular}{l} 990 \\ 980 \\ 971 \\ 961 \\ 951 \end{tabular} & \begin{tabular}{l} 980 \\ 961 \\ 942 \\ 924 \\ 906 \end{tabular} & \begin{tabular}{l} .971 \\ .943 \\ .915 \\ .889 \\ .863 \end{tabular} & \begin{tabular}{l} 962 \\ 925 \\ 889 \\ .855 \\ .822 \end{tabular} & \begin{tabular}{l} 952 \\ 907 \\ 864 \\ 823 \\ .784 \end{tabular} & \begin{tabular}{l} .943 \\ .890 \\ .840 \\ .792 \\ .747 \end{tabular} & \begin{tabular}{l} .935 \\ .873 \\ .816 \\ .763 \\ .713 \end{tabular} & \begin{tabular}{l} .926 \\ .857 \\ .794 \\ .735 \\ .681 \end{tabular} & \begin{tabular}{l} .917 \\ .842 \\ .772 \\ .708 \\ .650 \end{tabular} & \begin{tabular}{l} .909 \\ .826 \\ .751 \\ 683 \\ .621 \end{tabular} & \begin{tabular}{l} .893 \\ .797 \\ .712 \\ .636 \\ .567 \end{tabular} & \begin{tabular}{l} .877 \\ .769 \\ .675 \\ .592 \\ .519 \end{tabular} & \begin{tabular}{l} .870 \\ .756 \\ .658 \\ .572 \\ .497 \end{tabular} & \begin{tabular}{l} 862 \\ 743 \\ 641 \\ 552 \\ 476 \end{tabular} & \begin{tabular}{l} 847 \\ 718 \\ 609 \\ 516 \\ .437 \end{tabular} & \begin{tabular}{l} .833 \\ .694 \\ .579 \\ .482 \\ .402 \end{tabular} & \begin{tabular}{l} .806 \\ .650 \\ 524 \\ .423 \\ .341 \end{tabular} & \begin{tabular}{l} .781 \\ .610 \\ .477 \\ .373 \\ .291 \end{tabular} \\ \hline \begin{tabular}{c} 6 \\ 7 \\ 8 \\ 9 \\ 10 \end{tabular} & \begin{tabular}{l} 942 \\ 933 \\ 923 \\ 914 \\ 905 \end{tabular} & \begin{tabular}{l} 888 \\ 871 \\ 853 \\ 837 \\ 820 \end{tabular} & \begin{tabular}{l} .838 \\ .813 \\ 789 \\ 766 \\ .744 \end{tabular} & \begin{tabular}{l} .790 \\ .760 \\ .731 \\ .703 \\ .676 \end{tabular} & \begin{tabular}{l} 746 \\ 711 \\ .677 \\ .645 \\ .614 \end{tabular} & \begin{tabular}{l} .705 \\ .665 \\ .627 \\ 592 \\ .558 \end{tabular} & \begin{tabular}{l} .666 \\ .623 \\ 582 \\ .544 \\ .508 \end{tabular} & \begin{tabular}{l} .630 \\ .583 \\ .540 \\ .500 \\ .463 \end{tabular} & \begin{tabular}{l} 596 \\ .547 \\ .502 \\ 460 \\ .422 \end{tabular} & \begin{tabular}{l} .564 \\ 513 \\ 467 \\ .424 \\ 386 \end{tabular} & \begin{tabular}{l} 507 \\ 452 \\ 404 \\ 361 \\ 322 \end{tabular} & \begin{tabular}{l} .456 \\ .400 \\ .351 \\ .308 \\ .270 \end{tabular} & \begin{tabular}{l} .432 \\ .376 \\ .327 \\ 284 \\ .247 \end{tabular} & \begin{tabular}{l} 410 \\ 354 \\ 305 \\ .263 \\ .227 \end{tabular} & \begin{tabular}{l} 370 \\ .314 \\ .266 \\ .226 \\ .191 \end{tabular} & \begin{tabular}{l} 335 \\ 279 \\ .233 \\ .194 \\ .162 \end{tabular} & \begin{tabular}{l} .275 \\ 222 \\ .179 \\ .144 \\ .116 \end{tabular} & \begin{tabular}{l} .227 \\ .178 \\ .139 \\ .108 \\ .085 \end{tabular} \\ \hline \begin{tabular}{l} 11 \\ 12 \\ 13 \\ 14 \\ 15 \end{tabular} & \begin{tabular}{l} 896 \\ 887 \\ 879 \\ .870 \\ .861 \end{tabular} & \begin{tabular}{l} 804 \\ 788 \\ 773 \\ 758 \\ 743 \end{tabular} & \begin{tabular}{l} 722 \\ .701 \\ .681 \\ .661 \\ .642 \end{tabular} & \begin{tabular}{l} .650 \\ .625 \\ .601 \\ 577 \\ .555 \end{tabular} & \begin{tabular}{l} 585 \\ 557 \\ 530 \\ 505 \\ .481 \end{tabular} & \begin{tabular}{l} .527 \\ 497 \\ 469 \\ 442 \\ .417 \end{tabular} & \begin{tabular}{l} 475 \\ 444 \\ .415 \\ .388 \\ .362 \end{tabular} & \begin{tabular}{l} 429 \\ 397 \\ .368 \\ .340 \\ 315 \end{tabular} & \begin{tabular}{l} .388 \\ .356 \\ .326 \\ .299 \\ .275 \end{tabular} & \begin{tabular}{l} 350 \\ 319 \\ 290 \\ .263 \\ 239 \end{tabular} & \begin{tabular}{l} 287 \\ 257 \\ 229 \\ 205 \\ 183 \end{tabular} & \begin{tabular}{l} .237 \\ .208 \\ .182 \\ .160 \\ 140 \end{tabular} & \begin{tabular}{l} 215 \\ .187 \\ .163 \\ 141 \\ 123 \end{tabular} & \begin{tabular}{l} 195 \\ .168 \\ 145 \\ .125 \\ .108 \end{tabular} & \begin{tabular}{l} 162 \\ 137 \\ 116 \\ 099 \\ 084 \end{tabular} & \begin{tabular}{l} .135 \\ 112 \\ 093 \\ 078 \\ .065 \end{tabular} & \begin{tabular}{l} .094 \\ .076 \\ .061 \\ .049 \\ .040 \end{tabular} & \begin{tabular}{l} .066 \\ .052 \\ .040 \\ .032 \\ .025 \end{tabular} \\ \hline \begin{tabular}{l} 16 \\ 17 \\ 18 \\ 19 \\ 20 \end{tabular} & \begin{tabular}{l} 853 \\ 844 \\ 836 \\ 828 \\ 820 \end{tabular} & \begin{tabular}{l} 728 \\ 714 \\ 700 \\ .686 \\ .673 \end{tabular} & \begin{tabular}{l} 627 \\ 605 \\ 587 \\ 570 \\ 554 \end{tabular} & \begin{tabular}{l} 534 \\ 513 \\ A94 \\ 475 \\ A56 \end{tabular} & \begin{tabular}{l} 458 \\ 436 \\ 416 \\ .396 \\ 377 \end{tabular} & \begin{tabular}{l} 394 \\ .371 \\ .350 \\ .331 \\ .312 \end{tabular} & \begin{tabular}{l} 339 \\ 317 \\ 296 \\ 276 \\ 258 \end{tabular} & \begin{tabular}{l} 292 \\ 270 \\ 250 \\ 232 \\ 215 \end{tabular} & \begin{tabular}{l} 252 \\ 231 \\ 212 \\ 194 \\ 178 \end{tabular} & \begin{tabular}{l} 218 \\ .198 \\ 180 \\ .164 \\ 149 \end{tabular} & \begin{tabular}{l} .163 \\ .146 \\ .130 \\ .116 \\ .104 \end{tabular} & \begin{tabular}{l} 123 \\ 108 \\ 095 \\ 083 \\ .073 \end{tabular} & \begin{tabular}{l} .107 \\ .093 \\ .081 \\ .070 \\ .061 \end{tabular} & \begin{tabular}{l} .093 \\ .080 \\ .069 \\ .060 \\ .051 \end{tabular} & \begin{tabular}{l} .071 \\ .060 \\ .051 \\ .043 \\ .037 \end{tabular} & \begin{tabular}{l} .054 \\ 045 \\ .038 \\ .031 \\ .026 \end{tabular} & \begin{tabular}{l} 032 \\ 026 \\ .021 \\ .017 \\ .014 \end{tabular} & \begin{tabular}{l} .019 \\ 015 \\ 012 \\ .009 \\ .007 \end{tabular} \\ \hline 25 & 780 & .610 & .478 & 375 & 295 & 233 & 184 & .146 & 116 & 092 & .059 & .038 & .030 & .024 & .016 & .010 & 005 & 002 \\ \hline 30 & .742 & 552 & .412 & 308 & 231 & 174 & .131 & .099 & 075 & 057 & 033 & 020 & .015 & .012 & .007 & .004 & .002 & 001 \\ \hline \end{tabular}