Charlotte's Clothing issued a 5 percent bond with a maturity date of 15 years. Four years have passed and the bond is selling for $785. Assume that the bond pays interest annually. a. What is the current yield? Round your answer to two decimal places. b. What is the yield to maturity? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. C. If six years later the yield to maturity is 8 percent, what will be the price of the bond? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Interest Factors for the Present Value of One Dollar Time Period - - _ _ _ _ _ _ , 19990 91 96 97 9. 39%99 9993 9 ) R2 83 85 8 79161941393592 03 :1386979 8 9 60 610 1 | 942 114) EP40 31 ) 5 61 0953 49. 19248 1, 1 , 15 | 1977 56 ) 23 T HINE TH , 19 DB) 550 1997 F4010 432 410 370 1 9118 11 1 ) ) 11 1400 1013 10 1 - 0 -07 AT: N. 5 | 1 1 11 99183) SAL COAD | 124 16 106 | CB 263 226 19474 19804AFS|| 46 ) | 3186322 .20 (24/27 191 102 116 215 196 150g P AT 88 01 EPS 557 ) 397 | 1 2014 | | | LITE 115) 1109 1 ) ||| | | | | ) 1984) M3 CM 155 48 41 32 31 35 230 | 183 140 123 108 084 065 040 025 15 .3 | 128 ] 34 456 | 304 339 20252 | 12 0 003 01 03 0193 844 | 31 3 20 231 | | CBT-1 11 1 1 02t01 2016 31 11 11 1959 11. 00 | BBS 5D 5TH 111 16 31 | IEA II 0.3 OOOOOM 0310709 0 320 673 4 456 37 17 58 25 E149 II 03 161 05/ 03/126 014 003 10 100 375 20 21 14 16 116 02 00 0 000 024 06 010 006 001 _______ 1 0 0 0 020 | www Interest Factors for the Present Value of an Annuity of One Dollar Period 1 2 3 4 5 24 2 % 4% 5% 6% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 0.990 0.980 0,971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 1.970 1.942 1913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 2.941 2884 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 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 4.853 4.713 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 2.345 36% 0.735 1.276 1674 1.966 2.181 6 7 8 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6230 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 7.652 7.3257.020 6.733 6.463 6.210 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 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 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 9 10 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7139 6.805 6.495 5.988 5.453 5.029 4656 4.327 3.776 3.335 2.978 2683 11.255 10.575 9.954 9.385 8.863 8.384 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 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7.487 7.103 6,424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 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 3.962 3.459 3.061 2.740 13.865 12.849 11 938 11.118 10.3809712 9.108 8.559 8060 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 9.447 8.851 8.312 7.824 6.974 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 8002 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 48124 OBO 35293 104 2767 1917.226 15 678 14 324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7366 6.550 5.8775.316 4.844 4.0973.539 3.109 2.770 2010 16514877 13 500 12.462 11470 10 594 9.818 9.128 8.514 7.469 6.622 5 929 53534870110546 2 25 22.023 1952317412 15 622 14.094 12783 11.654 10 675 9.823 9077 7.843 68736 097 5.467 448 41472564 3.122 2776 30 25 808 22937 19 600 17.292 15 373 13.765 12.409 11258 10.274 9.427 8055 700) 6.171 5512_49794.160 2560 2124 2778 Interest Factors for the Present Value of One Dollar Time Period e year 1% 990 980 971 2% 980 961 942 3% 971 943 915 4% 962 925 889 5% 952 907 864 823 784 6% 7 943 890 840 792 .747 0 926 857 794 735 .681 % 917 842 772 708 650 10% 909 826 751 683 935 873 816 763 713 12% 893 797 712 14% 877 .769 15% 870 756 16% 862 743 18%2024284 847 806 718 650 .610 477 373 291 951 552 906 863 592 519 .822 572 497 476 992 630 583 933 923 914 905 790 760 731 703 .676 746 711 677 .645 .614 705 665 .627 592 558 666 .623 582 544 508 596 547 502 460 422 .456 400 351 308 .270 432 376 327 284 247 275 .222 179 144 116 266 191 500 463 139 108 085 350 215 625 896 887 879 870 861 319 888 838 .871 813 853 789 837 .766 820 744 .804.722 788 701 773 681 758 743 .642 728 623 714 605 700 587 686 570 673 554 410 354 305 263 227 .195 168 145 125 108 093 527 497 469 442 .417 601 .577 475 444 415 388 362 429388 397 356 368 326 340 299 315 275 557 530 505 481 458 436 .137 116 .099 661 061 555 112 093 .078 065 290 263 239 218 198 187 141 123 107 093 .094 066 076 052 040 049 032 040 025 032019 084 16 17 534 513 494 394 371 339 317 292 270 252 231 140 123 108 163 146 853 844 .836 828 820 456 20 25 026 014 780 742 610 552 478 412 375 308 295 231 146 000 116 075 073 061 038030 020 015 051 024 on 037 016 007 174 131 057 033 010 000 000 Interest Factors for the Present Value of an Annuity of One Dollar Period eg ver) 12 74 % 562 1 0 12 14 16 18 20 24 28 32 368 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0 877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 2 1970 1942 1913 1.886 1859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 3 2941 2.884 2829 2.775 2.723 2.673 2624 2.577 2.531 2487 2402 2322 2.246 2.174 2.106 1.981 1.868 1.766 1674 4 3902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 5 4.853 4.713 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 2.345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4,623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 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 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 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 4.1933.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7943 7536 71616.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11 348 10 635 9986 9 394 8.534 8.358 7.904 7.487 7.103 6.424 5,842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7367 5.628 6.0025.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.8.49 11938 11.118 10 380 9.712 9.108 8.559 8.060 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 8851 8.312 7.824 6.974 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 8.00271206.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 18 16.898 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 48124.080 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 40973.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.594 9818 9.128 8.514 7.469 6.623 5 929 5353 4.870 4.110 3.5463.113 2.772 25 22.023 1952317413 15 622 14094 12783 1654 10675 9.8239.077 784) 6.873 6097 5.467 448 4142 3.564 3.122 2.776 30 25 808 22937 19 600 1729215373 13.765 .409 11 258 10.274 9427 BOSS 2003 6.1715517 4.9794.160 256921242778