D

B

ond has the following features: - Coupon rate of interest (paid annually): 4 percent - Principal: \\( \\$ 1,000 \\) - Term to maturity: 11 years a. What will the holder receive when the bond matures? b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest aually. Use Appendix B and Appendix \\( D \\) to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? since the bond is selling for a c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eleven years if the funds eam 7 percent annually and there is \\( \\$ 90 \\) million outstanding? Use Appendix \\( C \\) to answer the question. Round your answer to the nearest dollat. Interest Factors for the Present Value of an Annuity of One Dollar Interest Factors for the Present Value of One Dollar