Cox Media Corporation pays a 10 percent coupon rate on debentures that are due in 20 years. The current yield to maturity on bonds of similar risk is 10 percent. The bonds are currently callable at $980. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Find the market value of the bonds using semiannual analysis (Ignore the call price in your answer. Do not round intermediate calculations and round your answer to 2 decimal places.) Price of the bond b. Do you think the bonds will sell for the price you arrived at in part a? Yes No Appendix Present value of S1, PV, PVEFV1 Period 11 0925 O 096 0857 0.794 0735 0760 0.9520952094 0915 0907 0.890 0.873 0.854 0.840 0.816 0.055 0.823 0.792 0.763 0822 0784 0747 0713 0.790 765 0705 0.656 0.711 0665 0523 0.731 06770627 0582 703 0645 520544 0.676 0614 0 958 0.50B 0.650 OSS 0527 47 557 0.497 0.444 0601 0530 0.469 0527 0505 0602 0.99009800971 O S80 0961 0943 0.971 09442 0915 0961 0924 O R 0951 0906 0942 O 0.837 0.933 0571 0813 0921 0.789 0916 16 0.905 0.744 0.896 0.722 DYO 0701 0.879 0.773 061 0870 0.661 0630 0.583 050 500 0.663 125 0.893 0797 0.712 0636 567 507 0,452 0.404 0361 0122 0287 0257 0.229 0205 13 0.163 ZERO OCHO POED CEO ZILO ON 105 1 09170009 0.901 0342 0325 0312 0.772 0.75 0.731 0708 0683 0659 DESO 0621 593 0.596 564 0535 0547 0513 0482 52 67 0.434 0460 0424 191 0.422 036 350 0356 0319 0286 0.326 0290 0258 0290 0232 0275 02 200 0.252 021 0 1 0231 10 021201300153 0164 013 O 014 DOO 0075 Don 0044 001200220015 O BELO 0.397 0.36 30 0315 0.292 0270 06 0.458 0194 0339 0344 DO 0.720 0.714 0100 0.686 04623 DEN 0552 150 01310227 025 0.232 0215 0.110 104 00 0.70 0742 0672 0587 570 0475 0.396 077 41 0.95 0412 2 3 010702080142 0.174 0600 CEDO 0111 0.06 Appendix B (concluded) Present value of $1 Percent 0499 0482 19 20 25 30 o87 080086208 o847 OB4008330000769 0.7830769 0.756 0743 0.731 0718 0.70606940640 92 0693 067 0.658 0641 0624 0509 0593 06790812 0.4ss 0613 Os2 052 oss2 034 0515 0410 o30 043 0519 0497 04760456 0437 0419 0.402 0 328 o 269 0.480 0.456 0432 0410 0 390 0370 03520335 0 262 o 207 0425 0400 0376 0354 0.333 o3140296 0279 o210 0.159 0376 351 0.27 03050 285 o 266 0249 0233 0.16 0.123 0.284 o 263 o 243 o 225 0.209 . 194 . 134 0 094 o 295 0.270 o 247 o 227 o 208 0.191 0 1760162 . 107 0073 0 261 0.237 0215 0.19s 0 178 . 162 0.148 0 135 0006 0056 o231 0.20 0 17 0 168 o 152 0.1370 124 0 112 o060 0043 0 204 . 182 0 163 0 145 0.130 0.116 0.104 0 093 0055 000 0 181 0.100 0.141 o12 o099 008 078 044 002 0.160 0.140 0.123 0 100 o 095 0084 0074 0065 oogs 0020 0 141 0 123 0.107 o092 0.071 0.062 0054 0028 0015 0.125 0 100 0 000 0000 0069 0.060 0.02 0049 002) 0012 0.111 0 095 0000 oose 0051 004 o018 009 008 0000 00:1 0043 oo37 0031 oo 007) 0061 oost 0 043 0037 0031 0 026 o012 oogs aos 00000024 oo16 oo13 obo4 0001 0026 000 001s o012 ooo7 oogs 0001 2 1 1 000200010001 00010 g 3 35 40 0.74107140667 094905100444 0406 o 364 0296 o 301 o 260 0.198 0223 0.186 0.132 0.165 0.133 0.0 o 122 0 09 n9 0091 0.068 0.039 0067 0 048 0026 0.050 0035 0017 ? 0.025 Oo12 0027 0018 0.008 0020 Oo13 o oos o015 0011 0008 a oos 0.000 1 0.005 1 0003 2 0002 011 o o o Appendix D Present value of an annuity of $1. PV. 152535 73 0935 1808 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10 575 11 348 12.106 12849 13.578 14.292 14.992 15.670 16151 19.523 0.990 1.970 2.941 3.902 4853 5.795 5.728 7652 8.566 9.471 10.368 11.255 12.134 13.004 12565 14715 15.562 16.398 17.226 18.046 22023 25.08 32335 39.196 0.971 1913 2.829 3.717 4.580 5.417 6.230 7.020 7.785 8.530 9 253 9.954 10635 11.296 0.943 1333 2.673 3.465 4212 4917 5.582 6.210 6802 7360 7887 8.384 3.387 4.100 4252 5.389 5.971 6515 7024 7499 7.943 0.962 0.952 1886 1859 2.775 2.723 3.630 3546 4.452 4329 5.242 5075 5002 5.786 6.733 6.463 7.435 7 108 7722 8.760 3305 9385 36 9.394 102563 9.899 11.11 100 11652 10.833 12.166 11 274 12659 11.690 13.134 1205 12.590 12402 15 622 14094 1792 197937159 21.482 0.926 1.783 2.577 3.312 3.993 4.623 5205 5.747 6.247 6710 7139 7536 7004 24 559 8.851 9.122 9.372 9.604 9 818 1065 1250 10% 11% 0.917 0.9090901 1.759 1.736 1.713 2.531 2.487 2444 3.240 3.170 3.102 3.890 3.791 3.696 4231 5033 4.868 4.712 5.535 5.335 5.146 5.995 5.759 5.537 6.418 6.145 6.805 6.495 6.207 7.161 5314 7037 7.103 6.750 7.785 7.367 6.982 8.061 7.606 7191 8.313 7.824 7379 8.544 8.022 7.549 8.756 8.201 7.702 8950 7.839 9.129 7.963 9077 1027462 10.757 9.779 10.962 90159042 12% 0893 1690 2.402 3.037 3.605 4.111 4.564 4.968 5328 5.650 5938 6.194 6.424 6.628 6.811 6974 7.120 7.250 7.366 7469 7843 B1055 3.244 8.304 9.295 9.712 10.106 10.477 10.328 11158 12561 13.166 13.754 14,324 14877 17,413 1000 23.115 25.730 3.745 9.100 960 9.703 10 059 100 10594 11470 11654 20 3765 11.424 1102 13801 12.233 Appendix D (concluded) Present value of an annuity of SI Period 14% 15% 16% 17% 18% 0877 0 1.547 2322 35% 0.741 1.289 1.696 1997 2220 235 2508 13% O 885 1668 2361 2.974 3517 3998 4422 4799 5132 5.426 5687 5.918 6.122 6302 6.462 6604 6.729 6.840 6.938 7.025 7330 7.495 7634 7675 0855 1.585 2.210 2.743 3.199 3.589 3.922 4 207 4.451 4659 411 4.983 5.118 0870 1.625 2283 2855 3.352 3.784 4.150 4.487 4.772 5.019 5234 5.421 5583 5724 5847 5954 6047 6.128 5199 6.259 6.464 2.655 .862 1.505 2.246 2.798 3274 3.585 4.039 4344 4.607 4833 5.029 5.197 5342 5.468 5.575 54668 5.749 5.818 5377 5.929 5097 5.177 5233 5206 2914 3.433 3.889 4208 4639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6265 5.373 6.457 6.550 6,623 6873 7003 7.105 7.133 2715 2.752 Percent 19% 0.840 1.547 2.140 2.639 3,058 3.410 3.706 3954 4.163 4.339 1436 4511 4.715 40 4.876 4936 49 5033 5.070 5.101 5.195 5235 5258 0 847 1.566 2 174 2.690 3.127 3.498 3.812 4079 4303 4494 4.656 4.793 4910 5.000 5.092 5.162 5222 5.273 5.315 5.353 5.467 5.517 5.545 5554 30% 0.769 1.361 1.816 2.166 2.435 2.643 2802 2.925 3.019 3.092 3 147 3.190 3.223 3249 3268 3.282 3.295 20% 25% 0833 0.00 15281.440 2.105 1.952 2.589 2.362 2991 2.689 3325 2951 3.605 3.161 3337 3.329 4031 3.463 4192 3.571 4322 3.656 4419 3.725 4533 3.780 3.524 4675 3.859 4730 3.87 3.910 312 3.928 4343 3.942 4870 3.954 4.94 3985 4.979 3.995 4.997 4.999 4.000 40% 0.714 1.224 1.589 1949 2035 2168 2.263 2.331 2379 2.414 2.438 2.456 2.469 2.478 2.484 2.779 2.799 50% 0.667 1.111 1.407 1.605 1.737 1824 1.883 1.922 1.948 1.965 1.977 1985 1.990 1.993 1995 1.997 1998 1999 1999 1.999 2.000 2000 2.000 2.000 2825 5.324 5.405 5.475 5.534 54 5628 5766 5.829 5371 5300 3.311 3.316 2.329 3.332 3.333 3.333 2840 2844 2848 2850 2.856 2.857 2.857 2857 2492 2494 2496 2.497 2.499 2.500 2.500 2.500 5,642 6.661