Compute the selling price of 8.00%, 15-year bonds with a par value of $450,000 and semiannual interest payments. The annual market rate for these bonds is 6.00%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount.) Table Value Present Value Cash Flow $450,000 par (maturity) value $18,000 interest payment Price of Bond TABLE B.1" Present Value of 1 p=1/(1 + i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 2 3 00001WN 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 0.9804 0.9709 0.9612 0.9426 0.9423 0.9151 0.9238 0.8885 0.9057 0.8626 0.8880 0.8375 0.8706 0.8131 0.8535 0.7894 0.8368 0.7664 0.8203 0.7441 0.8043 0.7224 0.7885 0.7014 0.7730 0.6810 0.7579 0.6611 0.7430 0.6419 0.7284 0.6232 0.7142 0.6050 0.7002 0.5874 0.6864 0.5703 0.6730 0.5537 0.6095 0.4776 0.5521 0.4120 0.5000 0.3554 0.4529 0.3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 0.2083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.1301 0.0972 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 0.0668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.0923 0.0573 0.0356 0.0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0588 0.0334 0.0189 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0304 0.0151 0.0075 0.0037 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today? Using the factors of n= 12 and i = 5% (12 semiannual periods and a semiannual rate of 5%), the factor is 0.5568. You would need to invest $2,784 today ($5,000 X 0.5568). p = [1-0 om] 1 /i (1 + i)" TABLE B.31 Present Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods NON NO 000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9804 0.9709 0.9615 1.9704 1.9416 1.9135 1.8861 2.9410 2.8839 2.8286 2.7751 3.9020 3.8077 3.7171 3.6299 4.8534 4.7135 4.5797 4.4518 5.7955 5.6014 5.4172 5.2421 6.7282 6.4720 6.2303 6.0021 7.6517 7.3255 7.0197 6.7327 8.5660 8.1622 7.7861 7.4353 9.4713 8.9826 8.5302 8.1109 10.3676 9.7868 9.2526 8.7605 11.2551 10.5753 9.9540 9.3851 12.1337 11.3484 10.6350 9.9856 13.0037 12.1062 11.2961 10.5631 13.8651 12.8493 11.9379 11.1184 14.7179 13.5777 12.5611 11.6523 15.5623 14.2919 13.1661 12.1657 16.3983 14.9920 13.7535 12.6593 17.2260 15.6785 14.3238 13.1339 18.0456 16.3514 14.8775 13.5903 22.0232 19.5235 17.4131 15.6221 25.8077 22.3965 19.6004 17.2920 29.4086 24.9986 21.4872 18.6646 32.8347 27.3555 23.1148 19.7928 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 13.7648 14.4982 15.0463 0.9346 0.9259 1.8080 1.7833 2.6243 2.5771 3.3872 3.3121 4.1002 3.9927 4.7665 4.6229 5.3893 5.2064 5.9713 5.7466 6.5152 6.2469 7.0236 6.7101 7.4987 7.1390 7.9427 7.5361 8.3577 7.9038 8.7455 8.2442 9.1079 8.5595 9.4466 8.8514 9.7632 9.1216 10.0591 9.3719 10.3356 9.6036 10.5940 9.8181 11.6536 10.6748 12.4090 11.2578 12.9477 11.6546 13.3317 11.9246 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 9.0770 9.4269 9.6442 9.7791 0.8929 0.8696 1.6901 1.6257 2.4018 2.2832 3.0373 2.8550 3.6048 3.3522 4.1114 3.7845 4.5638 4.1604 4.9676 4.4873 5.3282 4.7716 5.6502 5.0188 5.9377 5.2337 6.1944 5.4206 6.4235 5.5831 6.6282 5.7245 6.8109 5.8474 6.9740 5.9542 7.1196 6.0472 7.2497 6.1280 7.3658 6.1982 7.4694 6.2593 7.8431 6.4641 8.0552 6.5660 8.1755 6.6166 8.2438 6.6418 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 *Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9%? For (n = 10, i=9%), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ($2,000 X 6.4177)